HomeMy WebLinkAboutCC 2026-06-09_09h Award Roof Repairs and CH Exterior RehabItem 9.h.
MEMORANDUM
TO: City Council
FROM: Shannon Sweeney, Acting Public Works Director/City Engineer
BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Award of Roof Repairs and City Hall Exterior Rehabilitation
DATE: June 9, 2026
RECOMMENDATION:
1) Adopt a resolution authorizing the City Manager to execute a construction contract for
the Rebid Roof Repairs on City Structures Project to KRGS Roofing, Inc. (KRGS) and a
construction contract for the City Hall Balcony and Exterior Rehabilitation Project to BC
Construction and Electric (BC), subject to any minor, technical, or non-substantive
changes as approved by the City Manager in consultation with the City Attorney; and
2) Find that the project is categorically exempt from the California Environmental Quality
Act (“CEQA”) under the Class 2 exemption, which applies to the replacement or
reconstruction of existing structures and facilities where the new structure will be located
on the same site as the structure replaced and will have substantially the same purpose
and capacity as the structure replaced.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
On May 13, 20251, the City Council approved the 10-Year CIP including $370,000
allocated for Roof Repairs on seven City structures: City Hall including repairs of the
balcony and siding, Old City Hall, Council Chamber, Elm St. Restroom (Jaycee Building),
Police Station, Women’s Club, and Fire Station 1.
Table 1: Funding Breakdown
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14506
Request Title Description of Improvement Funding Source FY 2025-26
4950 - Measure O-2006 Sales Tax
350,000
4914 - Park Improvement
20,000
Evaluate and repair City building
roofs, and repair of balcony and
southern/western siding at City
Hall.
City Structures Roof Repairs (City
Hall, Balcony & Southern &
Western Siding, Old City Hall,
Council Chambers, PD, Women's
Club, Fire Station 1)
Page 148 of 427
Item 9.h.
City Council
Award of Roof Repairs and City Hall Exterior Rehabilitation
June 9, 2026
Page 2
To date, $19,611.86 of the $370,000 has been encumbered or expended for minor roof
repairs at City Hall, Police Department, Fire Station 1, and Women’s Club facilities,
asbestos testing on seven facility roofs, and asbestos remediation at Council Chambers.
Due to the unknown conditions and potential unforeseen repairs associated with both
projects, it is recommended that the contingency amount remain as a single lump sum
within the account and be used as needed for either project, rather than assigning
contingency percentages to each project individually. The total for both estimated
construction contracts and contingencies for the Rebid Roof Repairs Project and the City
Hall Balcony & Exterior Rehabilitation Project is within the available budget of
$350,388.14.
BACKGROUND:
Rebid Roof Repairs on City Structures
Roofs on two City facilities leaked during last year’s rainy season, and staff observed
potential roof issues at other facility locations. Staff contracted Wick’s Roofing to assess
the roofs at these seven locations: Old City Hall, Council Chambers, Elm St. Restroom
(Jaycee Building) City Hall, Fire Station 1, Police Station, and the Woman’s Club. Reports
for each location included findings, recommended actions, estimates, and photo s, which
were used to develop a Bid Book. The Bid Book was used to solicit bids on the repairs
and/or replacement of roofs at the seven facilities. The project was originally advertised
in September 2025. Two bids were received, which were significantly over budget. On
October 14, 2025,2 City Council rejected all bids, with the intention of separately obtaining
quotes for the urgent roof repairs and rebidding the roof replacements in the spring.
On October 24, 2025, staff issued a Request for Quotes for the roof repairs required on
four City structures (City Hall, Fire Station 1, Police Station, Women’s Club). No quotes
were received. Since no bids were received, the City contracted directly with Wick’s
Roofing and Solar, Inc. to complete necessary repairs, which were completed on these
four structures in February 2026.
2https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=290d7d89-520f-4257-a4f2-
d8f615e2f4d4&lang=English&Agenda=Agenda&Item=60&Tab=attachments
FY 25-26 Budget 370,000.00$
Encumbered to Date 19,611.86$
Available Budget 350,388.14$
Contract KRGS (Roof Repairs)117,000.00$
Contract BC (Balcony)188,749.00$
Contingency 44,639.14$
Proposed Expenditures:350,388.14$
Page 149 of 427
Item 9.h.
City Council
Award of Roof Repairs and City Hall Exterior Rehabilitation
June 9, 2026
Page 3
On April 29, 2026, staff advertised the Rebid Roof Repairs on the City’s website,
construction bid boards, and to six firms capable of performing such work. Four bids were
received by the bid opening date of May 22, 2026.
City Hall Balcony and Exterior Rehabilitation
The City Hall Balcony & Exterior Rehabilitation Project is intended to address ongoing
water intrusion and exterior deterioration at City Hall. City staff determined the second-
floor balcony outside the conference room lacks adequate waterproofing, which h as
allowed water intrusion into the building. Staff prepared a Bid Book and scope of work to:
remove and replace the balcony decking;
secure structural beams;
repair water intrusion damage;
provide waterproofing;
install new decking and railing systems;
replace damaged fascia;
replace deteriorated first-floor deck railing system;
remove and replace the exterior siding around the building;
clean and paint the siding, fascia, trim, eaves, and rain gutters.
On May 1, 2026, City staff advertised the City Hall Balcony and Exterior Rehabilitation
Project on the City’s website, construction bid boards, and to six firms capable of
performing such work. Two bids were received by the bid opening date of May 22, 2026 .
ANALYSIS OF ISSUES:
Rebid Roof Repairs on City Structures
The Bid Book stated that the City intends to award a contract to the responsive and
responsible bidder with the lowest Bid Total. KRGS is the lowest responsive bidder. Work
is intended to start July 13, 2026, and last no more than 45 working days.
City Hall Balcony and Exterior Rehabilitation
The Bid Book stated that the City intends to award a contract to the responsive and
responsible bidder with the lowest Bid Tota l. BC Construction is the lowest responsive
bidder. Work is intended to start August 31, 2026, and last no more than 60 working days.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Staff’s recommendation;
2. Do not approve staff’s recommendation for either contract and request further
information;
3. Provide other direction to staff.
Page 150 of 427
Item 9.h.
City Council
Award of Roof Repairs and City Hall Exterior Rehabilitation
June 9, 2026
Page 4
ADVANTAGES:
The Rebid Roof Repairs Project and the City Hall Balcony and Exterior Rehabilitation
Project will repair and restore deteriorated components of City facilities, providing
waterproofing to prevent future water intrusion damage and degradation of a City asset.
DISADVANTAGES:
The construction work will cause temporary noise and parking impacts due to contractor
storage and staging.
ENVIRONMENTAL REVIEW:
The projects are categorically exempt from the California Environmental Quality Act
(“CEQA”) under the Class 2 exemption, which applies to the replacement or
reconstruction of existing structures and facilities where the new structure will be located
on the same site as the structure replaced and will have substantially the same purpose
and capacity as the structure replaced. (State CEQA Guidelines, § 15302.) Since the
projects involve the repair, replacement, and rehabilitation of existing City facility
components there will be no expansion of use or capacity. Therefore, the Class 2
exemption applies.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution
2. Proposed Contract KRGS – Rebid Roof Repairs
3. Proposed Contract BC – City Hall Balcony and Exterior Rehabilitation
Page 151 of 427
65501.00015\42788974.6
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONSTRUCTION CONTRACT FOR THE REBID
ROOF REPAIRS ON CITY STRUCTURES PROJECT TO KRGS
ROOFING, INC. AND A CONSTRUCTION CONTRACT FOR THE
CITY HALL BALCONY AND EXTERIOR REHABILIT ATION
PROJECT TO BC CONSTRUCTION AND ELECTRIC (BC)
WHEREAS, the City commissioned an assessment of the roofs on City facilities and
determined that minor repairs were required at four facilities and major repairs at
three facilities; and
WHEREAS, in September 2025, the City received responsive bids for the Roof
Repairs on City Structures Project, but City Council rejected all bids on October 15,
2025, due to the bids being significantly over budget and directed staff to rebid the
minor repairs and major repairs separately; and
WHEREAS, minor roof repairs were completed at City Hall, Police Department, Fire
Department, and Women’s Club in February 2026; and
WHEREAS, staff advertised the Rebid Roof Repairs on City Structures Project to
address major roof repairs at City Council Chambers and Old City Hall, receiving
responsive bids on May 22, 2026, that were within the budget; and
WHEREAS, staff recommends awarding the construction contract for the Rebid Roof
Repairs on City Structures to the lowest responsive bidder, KRGS Roofing, Inc., for
$117,000; and
WHEREAS, the City Hall Balcony and Exterior Rehabilitation Project was identified
to address ongoing water intrusion and exterior deterioration at City Hall including
repairs to the balcony, railing, and decking systems, waterproofing, and siding; and
WHEREAS, staff advertised the City Hall Balcony and Exterior Rehabilitation Project ,
and received responsive bids on May 22, 2026, that were within the budget ; and
WHEREAS, staff recommends awarding the construction contract for the City Hall
Balcony and Exterior Rehabilitation Project to the lowest responsive bidder, BC
Construction, for $188,749; and
WHEREAS, the FY 2025-26 budget includes $370,000 for the completion of both the
Roof Repairs on City Structures and the rehabilitation of City Hall balcony and
exterior.
Page 152 of 427
RESOLUTION NO.
PAGE 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande, as follows:
1. RECITALS. The foregoing recitals are true and correct and are incorporated
herein.
2. BID AWARD. The City Council authorizes the City Manager or designee to
execute a construction contract for the Roof Repairs on City Structures
Project to KRGS Roofing, Inc. for $117,000, and a construction contract for
the City Hall Balcony and Exterior Rehabilitation Project to BC Construction
for $188,749, subject to any minor, technical, or non-substantive changes as
approved by the City Manager in consultation with the City Attorney, and to
approve change orders as needed for either project up to $44,639.14 for
unanticipated costs during the construction phase of both Projects. The City
Council incorporates the analysis of the Staff Report dated June 9, 2026,
accompanying this item, as part of the passage of this Resolution.
3. CEQA FINDINGS. The City Council finds that the proposed action is
categorically exempt from the California Environmental Quality Act (“CEQA”)
under the Class 2 exemption, which applies to the replacement or
reconstruction of existing structures and facilities where the new structure
will be located on the same site as the structure replaced and will have
substantially the same purpose and capacity as the structure replaced.
(State CEQA Guidelines, § 15302.) Since the projects involve the repair,
replacement, and rehabilitation of existing City facility components, there will
be no expansion of use or capacity. Therefore, the Class 2 exemption
applies.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 9th day of June 2026.
Page 153 of 427
RESOLUTION NO.
PAGE 3
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
ISAAC ROSEN, CITY ATTORNEY
Page 154 of 427
RESOLUTION NO.
PAGE 4
Exhibit “A”
License: Class A 372751
DIR#:1000004631
Addendum:Yes
Bid Bond:Yes
No. SS(1)Description
Estimated
Quantity Unit Unit Cost Total Cost
1 77 Mobilization, Pothole, Demobilization and Cleanup 1 LS $18,000.00 $18,000.00
2 77
Sheeting, Shoring, Bracing, Shielding and Excavation Safety
Measures 1 LS $6,000.00 $6,000.00
3 7, 12 Traffic Control 1 LS $35,000.00 $35,000.00
4 13 Water Pollution Control Plan 1 LS $3,000.00 $3,000.00
5 77 6" C900 PVC Waterline 221 LF $180.00 $39,780.00
6 77 8" C900 PVC Waterline 296 LF $190.00 $56,240.00
7 77 8" Waterline Tie-in at Wesley St & W Branch St 1 LS $14,000.00 $14,000.00
8 77 Larchmont Drive & Wesley Street Lowering & Connection 1 LS $13,000.00 $13,000.00
9 77
6" Waterline Tie-in at Vernon St & W Branch St (special order
hot tap sleeve per plan)1 LS $13,000.00 $13,000.00
10 77 Connection on Vernon Street to Existing 6" ACP 1 LS $10,000.00 $10,000.00
11 77 Install Air & Vacuum Relief Valve Assembly 1 EA $7,000.00 $7,000.00
12 77
Install Fire Hydrant Assembly (hydrant provided by City) & Blue
Reflector 1 EA $14,000.00 $14,000.00
13 77 Reconnect Fire Hydrant Assembly in Street 1 EA $8,500.00 $8,500.00
14 77 Reconnect Double Check Detector w/ FDC in Street 1 LS $8,500.00 $8,500.00
15 73, 77 Reconnect Water Service Manifold in Street 1 LS $8,000.00 $8,000.00
16 73, 77 Reconnect 1" Water Services in Street 2 EA $2,500.00 $5,000.00
17 73, 77 Reconnect 2" Water Services in Street 1 EA $4,000.00 $4,000.00
18 73, 77 1.5"-2" Water Service Replacement & Sidewalk Repairs 1 EA $12,000.00 $12,000.00
19 73, 77 1" Water Service Replacement in Unpaved 1 EA $5,500.00 $5,500.00
20 77 Disinfection & Pressure Testing of Piping 517 LF $12.00 $6,204.00
21 77
Abandonment, Cap and Demolition of Existing Water Lines &
Valves 1 LS $9,000.00 $9,000.00
22 77 Remove Fire Hydrant Assembly & Abandon 1 EA $1,500.00 $1,500.00
23 39, 77, 84 Pavement Trench Repair (allowance)51 TON $700.00 $35,700.00
24 39, 77, 84 Pavement Stencil (allowance)1 LS $2,000.00 $2,000.00
25 39, 77, 85 Red Curb Paint (allowance)60 LF $10.00 $600.00
$335,524.00
BASE BID
R. Baker, Inc.
P.O. Box 419
Arroyo Grande, CA 93421
BASE BID:
No. Description Unit Unit Cost Quantity Total Cost Quantity Total Cost
1
Replace 1" Galvanized Water Service with Brass & PVC per City
Standard 6210, average 20 LF length, including meter box
(OldCastle Fibrelyte FL12)EA $3,300.00 164 $541,200.00 66 $217,800.00
2
Replace and Reconnect Meter Boxes (OldCastle Fibrelyte FL12) on
a shared water service EA $2,400.00 24 $57,600.00 7 $16,800.00
3
Concrete pad and sidewalk repair around meter boxes, estimated 20
SF per service, per City Std. 4110 SF $47.50 3280 $155,800.00 1320 $62,700.00
$754,600.00 $297,300.00
REVISEDBID ALTERNATE 1 ORIGINAL
Page 155 of 427
ATTACHMENT 2
BB&K (2023) -1- PROFESSIONAL SERVICES AGREEMENT
CITY OF ARROYO GRANDE
SHORT FORM CONSTRUCTION CONTRACT
REBID - ROOF REPAIRS ON CITY STRUCTURES (PW 2025-08)
1. PARTIES AND DATE.
This Contract is made and entered into this 9th day of June 2026 by and between the City
of Arroyo Grande (“City”) and KRGS Roofing, Inc, a California corporation with its
principal place of business at 660 Weng Star Street, Beaumont, CA 92223 (“Contractor”)
to engage Contractor to construct the REBID ROOF REPAIRS ON CITY STRUCTURES
(PW 2025-08) (“Project”) as set forth in this Contract. City and Contractor are sometimes
individually referred to as “Party” and collectively as “Parties” in this Contract.
2. RECITALS.
2.1 Contractor. Contractor desires to perform and assume responsibility for
the provision of certain construction services required by City on the terms and conditions
set forth in this Contract. Contractor represents that it is duly licensed and experienced
in providing roof repair and maintenance to public clients, that it and its employees or
subcontractors have all necessary licenses and permits to perform the services in the
State of California, and that it is familiar with the plans of City. The following license
classifications are required for this Project: Class B or Class C-39
2.2 Project Documents & Certifications. Contractor has obtained, and
delivers concurrently herewith, Performance Bond, Payment Bond, Insurance Documents
as required by the Contract.
3. TERMS.
3.1 Incorporation of Contract Documents.
3.1.1 Contract Documents. This Contract includes and hereby
incorporates in full by reference the following documents, including all exhibits, drawings,
specifications and documents therein, and attachments and addenda there to:
A. Schedule (Exhibit “A”)
B. Scope of Work: Construction Plans and Technical Specifications
(Exhibit “B”)
C. Special Conditions (Exhibit “C”)
D. Contractor’s Certificate Regarding Workers’ Compensation (Exhibit
“D”)
E. Public Works Contractor Registration Certification (Exhibit “E”)
F. Payment and Performance Bonds (Exhibit “F”)
G. CARB Fleet Compliance Certification (Exhibit “G”)
H. Notice Inviting Bids, if any
Page 156 of 427
ATTACHMENT 2
BB&K (2023) -2- PROFESSIONAL SERVICES AGREEMENT
I. Instructions to Bidders, if any
J. Addenda, if any
K. Contractor’s Bid, if any
3.1.2 Order of Precedence. To the extent there is a conflict between
any portions of this Contract, the order of precedence shall be as follows: Permits,
Change Orders (most recent first), Addenda (most recent first), Funding Requirements,
Technical Specifications, Construction Plans, Special Provisions, Contract, The
Greenbook, Instructions to Bidders, Notice Inviting Bids, Contractor’s Bid.
3.2 Contractor’s Scope of Work. Contractor promises and agrees, at its own
cost and expense, to furnish to City all labor, materials, tools, equipment, se rvices, and
incidental and customary work necessary to fully and adequately complete the Project,
including all structures and facilities necessary for the Project or described in the Contract
(hereinafter sometimes referred to as the “Work”), for a Total Contract Price as specified
pursuant to this Contract. All Work shall be subject to, and performed in accordance with
the above-referenced documents, as well as the exhibits attached hereto and
incorporated herein by reference.
3.3 Compensation and Payment.
3.3.1 Amount of Compensation. As consideration for performance of
the Work required herein, City agrees to pay Contractor the total contract price of One
Hundred Seventeen Thousand Dollars ($117,000) (“Total Contract Price”) provided that
such amount shall be subject to adjustment pursuant to the applicable terms of this
Contract or written Change Orders (as defined herein).
3.3.2 Payment of Compensation. If the Work is scheduled for
completion in thirty (30) or less calendar days, City will arrange for payment of the Total
Contract Price upon completion and approval by City of the Work. If the Work is
scheduled for completion in more than thirty (30) calendar days, City will pay Contractor
on a monthly basis as provided for herein. On or before the fifth (5th) day of each month,
Contractor shall submit to City an itemized application for payment in the format supplied
by City indicating the amount of Work completed since commencement of the Work or
since the last progress payment. These applications shall be s upported by evidence
which is required by this Contract and such other documentation as City may require.
Contractor shall certify that the Work for which payment is requested has been done and
that the materials listed are stored where indicated. Contractor may be required to furnish
a detailed schedule of values upon request of City and in such detail and form as City
shall request, showing the quantities, unit prices, overhead, profit, and all other expenses
involved in order to provide a basis for determining the amount of progress payments.
3.3.3 Prompt Payment. City shall review and pay all progress payment
requests in accordance with the provisions set forth in Section 20104.50 of the California
Page 157 of 427
ATTACHMENT 2
BB&K (2023) -3- PROFESSIONAL SERVICES AGREEMENT
Public Contract Code. However, no progress payments will be made for Work not
completed in accordance with this Contract. Contractor shall comply with all applicable
laws, rules and regulations relating to the proper payment of its employees,
subcontractors, suppliers or others.
3.3.4 Contract Retentions. If this Contract is greater than Five
Thousand dollars ($5,000), from each approved progress estimate, five percent (5%) will
be deducted and retained by City, and the remainder will be paid to Contractor. All
Contract retention shall be released and paid to Cont ractor and subcontractors pursuant
to California Public Contract Code Section 7107.
3.3.5 Other Retentions. In addition to Contract retentions, City may
deduct from each progress payment an amount necessary to protect City from loss
because of: (1) liquidated damages which have accrued as of the date of the application
for payment; (2) any sums expended by City in performing any of Contractor’s obligations
under the Contract which Contractor has failed to perform or has performed inadequately;
(3) defective Work not remedied; (4) stop payment notices as allowed by state law; (5)
reasonable doubt that the Work can be completed for the unpaid balance of the Total
Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of
the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of
Contractor to maintain or submit on a timely basis proper and sufficient documentation as
required by the Contract or by City during the prosecution of the Work; (9) erroneous or
false estimates by Contractor of the value of the Work performed; (10) any sums
representing expenses, losses, or damages as determined by City, incurred by City for
which Contractor is liable under the Contract; and (11) any other sums which City is
entitled to recover from Contractor under the terms of the Contract or pursuant to state
law, including Section 1727 of the California Labor Code. The failure by City to deduct
any of these sums from a progress payment shall not constitute a waiver of City’s right to
such sums.
3.3.6 Substitutions for Contract Retentions. Pursuant to California
Public Contract Code section 22300, Contractor may substitute securities for any money
withheld by City to ensure the performance under the Contract. At the request and
expense of Contractor, securities equivalent to the amount withheld shall be deposited
with City, with the State or a federally chartered bank as the escrow agent, who shall
return such securities to Contractor upon satisfactory completion of the Contract. Depos it
of securities with an escrow agent shall be subject to a written agreement between the
escrow agent and City, which provides that no portion of the securities shall be paid to
Contractor until City has certified to the escrow agent, in writing, that the Contract has
been satisfactorily completed. Securities eligible for investment under this section shall
be limited to those listed in Section 16430 of the Government Code, bank or savings &
loan certificates of deposit, interest-bearing demand deposit accounts, stand-by letters of
credit, or any other security mutually agreed to by Contractor.
Page 158 of 427
ATTACHMENT 2
BB&K (2023) -4- PROFESSIONAL SERVICES AGREEMENT
3.3.7 Payment to Subcontractors. Contractor shall pay all
subcontractors for and on account of work performed by such subcontractors in
accordance with the terms of their respective subcontracts and as provided for in Section
7108.5 of the California Business and Professions Code. Such payments to
subcontractors shall be based on the measurements and estimates made and progress
payments provided to Contractor pursuant to this Contract.
3.3.8 Title to Work. As security for partial, progress, or other payments,
title to Work for which such payments are made shall pass to City at the time of payment.
To the extent that title has not previously been vested in City by reason of pa yments, full
title shall pass to City at delivery of the Work at the destination and time specified in this
Contract. Such transferred title shall in each case be good, free and clear from any and
all security interests, liens, or other encumbrances. Con tractor promises and agrees that
it will not pledge, hypothecate, or otherwise encumber the items in any manner that would
result in any lien, security interest, charge, or claim upon or against said items. Such
transfer of title shall not imply acceptance by City, nor relieve Contractor from the
responsibility to strictly comply with the Contract, and shall not relieve Contractor of
responsibility for any loss of or damage to items.
3.3.9 Labor and Material Releases. Contractor shall furnish City with
labor and material releases from all subcontractors performing work on, or furnishing
materials for, the Work governed by this Contract prior to final payment by City.
3.4 Period of Performance and Liquidated Damages.
3.4.1 Contractor shall perform and complete all Work under this
Contract within 45 working days beginning the effective date of the Notice to Proceed
(“Contract Time”). Contractor shall perform its Work in strict accordance with any
completion schedule, construction schedule, or project milestones developed by City.
Such schedules or milestones may be included as part of Exhibits “A” or “B” attached
hereto, or may be provided separately in writing to Contractor. Contractor agrees that if
such Work is not completed within the aforementioned Contract Time, it i s understood,
acknowledged and agreed that City will suffer damage. Pursuant to Government Code
Section 53069.85, Contractor shall pay to City as fixed and liquidated damages the sum
of Five Hundred Fifty Dollars ($ 550) per day for each and every calendar day of delay
beyond the Contract Time.
3.4.2 Contractor’s entitlement to an extension of Contract Time is
limited to a City-caused extension of the critical path or a Force Majeure Event (as defined
herein) that impacts the critical path and established by a proper time impact analysis.
Contractor shall not be entitled to an adjustment in the Contract Time for delays within
the control of Contractor. Contractor will not be entitled to receive an adjustment to the
Total Contract Price or any other compensation due to a delay that results from a Force
Majeure Event. City’s liability to Contractor for delays to the critical path for which City is
Page 159 of 427
ATTACHMENT 2
BB&K (2023) -5- PROFESSIONAL SERVICES AGREEMENT
responsible shall be limited to only an extension of Contract Time unless such delays
were unreasonable under the circumstances.
3.4.3 A Force Majeure Event shall mean an event that materially affects
a Party’s performance and is one or more of the following: (1) Acts of God or other natural
disasters occurring at the Project site; (2) terrorism or other acts of a public ene my; (3)
orders of governmental authorities (including, without limitation, unreasonable and
unforeseeable delay in the issuance of permits or approvals by governmental authorities
that are required for the work); (4) pandemics, epidemics or quarantine rest rictions; and
(5) strikes and other organized labor action occurring at the project site and the effects
thereof on the work, only to the extent such strikes and other organized labor action are
beyond the control of Contractor and its subcontractors, of e very tier, and to the extent
the effects thereof cannot be avoided by use of replacement workers. For purposes of
this section, “orders of governmental authorities,” includes ordinances, emergency
proclamations and orders, rules to protect the public health, welfare and safety, and other
actions of City in its capacity as a public agency.
3.5 Change Orders.
3.5.1 Change Orders. Any change in the scope of the Work, method
of performance, nature of materials or price thereof, or any other matter materially
affecting the performance or nature of the Work shall not be paid for or accepted unless
such change, addition or deletion is approved in advance and in writing by a written
change order, either signed by the Parties or issued unilaterally by City (“Change Order”).
Failure to timely request a Change Order shall constitute a waiver of any right to adjust
the Contract Time or the Total Contract Price. All requests for Change Orders shall be
accompanied by detailed supporting documentation, including but not limited to payroll
records, invoices, schedules, and any other documentation requested by City for the
purpose of determining the additional costs or the impact of any delay. If the change
involves Work bid at a unit price, then the Total Contract Price shall be i ncreased at the
unit price. If there is no unit price, then the Total Contract Price shall be adjusted to
account for costs actually incurred plus an allowed mark-up of up to fifteen percent (15%),
which shall constitute the entire amount of profit, mark-ups, field or home office overhead
costs, including personnel, equipment or office space, any materials, or any costs of
equipment idle time for such work. Regardless of ownership, equipment rates shall not
exceed the listed prevailing rates at local equipment rental agencies, or distributors, at
the time the work is performed. Nothing herein shall prevent the Parties from agreeing to
a lump sum cost.
3.5.2 Changes Ordered By City. City may at any time issue a written
directive ordering additions, deletions, or changes to the Work. Contractor shall proceed
with the work in accordance with the directive. To the extent the directive results in extra
costs or requires additional Contract Time, Contractor shall request a Change Order
within seven (7) days of receiving the written directive. If any costs are not capable of
Page 160 of 427
ATTACHMENT 2
BB&K (2023) -6- PROFESSIONAL SERVICES AGREEMENT
being determined within seven (7) days, then Contractor shall provide the costs within
seven (7) days of when the costs are capable of being determined.
3.5.3 Changes Requested By Contractor. With respect to any matter
that may involve or require an adjustment to the Contract Time or the Total Contract Price,
Contractor shall provide written notice of the underlying facts and circumstances that gave
rise to the potential change and any costs within seven (7) days or prior to the alteration
of conditions, whichever is earlier. Failure to give notice shall constitute a waiver of
Contractor’s right to a change order. If any costs are not capable of being determined
within seven (7) days, then Contractor shall provide the costs within seven (7) days of
when the costs are capable of being determined.
3.6 Substitutions/”Or Equal”. Pursuant to Public Contract Code Section
3400(b), City may make a finding that designates certain products, things, or services by
specific brand or trade name. Such designation, if any, is in the Special Conditions.
Unless specifically designated in this Contract, whenever any material, process, or article
is indicated or specified by grade, patent, or proprietary name or by name of
manufacturer, such specifications shall be deemed to be used for the purpose of
facilitating the description of the material, process or article desired and shall be deemed
to be followed by the words “or equal.” Contractor may, unless otherwise stated, offer for
substitution any material, process or article which shall be substantially equal or better in
every respect to that so indicated or specified in this Contract. However, City may have
adopted certain uniform standards for certain materials, processes and articles.
Contractor shall submit requests, together with substantiating data, for substitution of any
“or equal” material, process or article no later than thirty-five (35) days after award of the
Contract. To facilitate the construction schedule and sequencing, some requests may
need to be submitted before thirty-five (35) days after award of Contract. Provisions
regarding submission of “or equal” requests shall not in any way authorize an extension
of time for performance of this Contract. If a proposed “or equal” substitution request is
rejected, Contractor shall be responsible for providing the specified material, process or
article. The burden of proof as to the equality of any material, process or article shall rest
with Contractor. City has the complete and sole discretion to determine if a material,
process or article is an “or equal” material, process or article that may be substituted.
Data required to substantiate requests for substitutions of an “or equal” material, process
or article data shall include a signed affidavit from Contractor stating that, and describing
how, the substituted “or equal” material, process or article is equivalent to that specified
in every way except as listed on the affidavit. Substantiating data shall include any and
all illustrations, specifications, and other relevant data including catalog information which
describes the requested substituted “or equal” material, process or article, and
substantiates that it is an “or equal” to the material, process or article. The substantiating
data must also include information regarding the durability and lifecycle cost of the
requested substituted “or equal” material, process or article. Failure to submit all the
required substantiating data, including the signed affidavit, to City in a timely fashion will
result in the rejection of the proposed substitution. Contractor shall bear all of City’s costs
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associated with the review of substitution requests. Contractor shall be responsible for
all costs related to a substituted “or equal” material, process or article.
3.7 Standard of Performance; Performance of Employees. Contractor shall
perform all Work under this Contract in a skillful and workmanlike manner, and consistent
with the standards generally recognized as being employed by contractors in the State of
California. Contractor warrants that all employees and subcontractors shall have sufficient
skill and experience to perform the Work assigned to them. Contractor represents that it,
its employees and subcontractors have all licenses, permits, qualifications and approvals
of whatever nature that are legally required to perform the Work, including a business
license, and that such licenses and approvals shall be maintained throughout the term of
this Contract. As provided for in the indemnification provisions of this Contract, Contractor
shall perform, at its own cost and expense and without reimbursement from City, any
work necessary to correct errors or omissions which are caused by Contractor’s failure to
comply with the standard of care provided for herein. Any employee who is determined
by City to be uncooperative, incompetent, a threat to the safety of persons or the Work,
or any employee who fails or refuses to perform the Work in a manner acceptable to City,
shall be promptly removed from the Project by Contractor and shall not be re -employed
on the Work.
3.8 Control and Payment of Subordinates; Contractual Relationship. City
retains Contractor on an independent contractor basis and Contractor is not an employee
of City. Any additional personnel performing the work governed by this Contract on behalf
of Contractor shall at all times be under Contractor’s exclusive direction and control.
Contractor shall pay all wages, salaries, and other amounts due such personnel in
connection with their performance under this Contract and as required by law. Contractor
shall be responsible for all reports and obligations respecting such additional personnel,
including, but not limited to: social security taxes, income tax withholding, unemployment
insurance, and workers’ compensation insurance.
3.9 Labor.
3.9.1 Prevailing Wages. Contractor is aware of the requirements of
California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code
of Regulations, Title 8, Section 16000 et seq., (“Prevailing Wage Laws”), which require
the payment of prevailing wage rates and the performance of other requirements on
“public works” and “maintenance” projects. Since the Work is being performed as part of
an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage
Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply
with such Prevailing Wage Laws. City shall provide Contractor with a copy of the
prevailing rates of per diem wages in effect at the commencement of this Contract.
Contractor shall make copies of the prevailing rates of per diem wages for each craft,
classification or type of worker needed to execute the Services available to interested
parties upon request, and shall post copies at Contractor’s principal place of business
and at the project site. Contractor shall defen d, indemnify and hold City, its officials,
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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. Contractor and
any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof
for each worker paid less than the prevailing wage rates.
3.9.2 Apprenticeable Crafts. When Contractor employs workmen in an
apprenticeable craft or trade, Contractor shall comply with the provisions of Section
1777.5 of the California Labor Code with respect to the employment of properly registered
apprentices upon public works. The primary responsibility for compliance with said
section for all apprenticeable occupations shall be with Contractor. The Contractor or any
subcontractor that is determined by the Labor Commissioner to have knowingly violated
Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full
calendar day of noncompliance, or such greater amount as provided by law.
3.9.3 Hours of Work. Contractor is advised that eight (8) hours labor
constitutes a legal day’s work. Pursuant to Section 1813 of the California Labor Code,
Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is
permitted to work more than eight (8) hours in any one calendar day and forty (40) hours
in any one calendar week, except when payment for overtime is made at not less than
one and one-half (1-1/2) times the basic rate for that worker.
3.9.4 Payroll Records. Contractor and each subcontractor shall keep
an accurate payroll record, 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 him or her in connection with the public work. The payroll records shall be
certified and shall be available for inspection at all reasonable hours at the principal office
of Contractor in the manner provided in Labor Code section 1776. In the event of
noncompliance with the requirements of this section, Contractor shall have 10 days in
which to comply subsequent to receipt of written notice specifying in what respects such
Contractor must comply with this section. Should noncompliance still be evident after
such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00
for each calendar day or portion thereof, for each worker, until strict compliance is
effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner.
A contractor who is found to have violated the provisions of law regarding wages on Public
Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a
period of one to three years as determined by the Labor Commissioner. Upon the request
of the Division of Apprenticeship Standards or the Division of Labor Standards
Enforcement, such penalties shall be withheld from progress payments then due. The
responsibility for compliance with this section is on Contractor. In accordance with Labor
Code section 1771.4, the Contractor and each subcontractor shall furnish the certified
payroll records directly to the Department of Industrial Relations (“DIR”) on a weekly basis
and in the format prescribed by the DIR, which may include electronic submission. The
requirement to submit certified payroll records directly to the Labor Commissioner under
Labor Code section 1771.4 shall not apply to work performed on a public wo rks project
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that is exempt pursuant to the small project exemption specified in Labor Code Section
1771.4.
3.9.5 Contractor and Subcontractor Registration. Pursuant to Labor
Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on,
be listed in a bid proposal, or enter into a contract to perform public work must be
registered with the DIR. No bid will be accepted nor any contract entered into without
proof of the contractor’s and subcontractors’ current registration with the DIR t o perform
public work. Contractor is directed to review, fill out and execute the Public Works
Contractor Registration Certification attached hereto as Exhibit “E” prior to contract
execution. Notwithstanding the foregoing, the contractor registration requirements
mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed
on a public works project that is exempt pursuant to the small project exemption specified
in Labor Code Sections 1725.5 and 1771.1.
3.9.6 Labor Compliance; Stop Orders. This Project is subject to
compliance monitoring and enforcement by the DIR. It shall be the Contractor’s sole
responsibility to evaluate and pay the cost of complying with all labor compliance
requirements under this Contract and applicable law. Any stop orders issued by the DIR
against Contractor or any subcontractor that affect Contractor’s performance of Work,
including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or
resulting from such stop orders shall be considered Contractor caused delay subject to
any applicable liquidated damages and shall not be compensable by City. Contractor
shall defend, indemnify and hold City, its officials, officers, employees and agents free
and harmless from any claim or liability arising out of stop orders issued by the DIR
against Contractor or any subcontractor.
3.10 Performance of Work; Jobsite Obligations.
3.10.1 Water Quality Management and Compliance.
3.10.1.1 Water Quality Management and Compliance. Storm,
surface, ground, nuisance, or other waters may be encountered at various times during
construction of the Project. Contractor hereby acknowledges that it has investigated the
risk arising from such water and assumes any and all risks and liabilities arising therefrom.
Contractor shall keep itself and all subcontractors, staff, and employees fully informed of
and in compliance with all local, state and federal laws, rules and regulations that may
impact, or be implicated by the performance of the Wo rk including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000 -14950);
local ordinances regulating discharges of storm water; and any and all regulations,
policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any
ground or surface water in the State.
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3.10.1.2 Compliance with the Statewide Construction General
Permit. Contractor shall comply with all conditions of the most recent iteration of the
National Pollutant Discharge Elimination System General Permit for Storm Water
Discharges Associated with Construction Activity, issued by the California State Water
Resources Control Board (“Permit”). It shall be Contractor’s sole responsibility to file a
Notice of Intent and procure coverage under the Permit for all construction activity which
results in the disturbance of more than one acre of total land area or which is part of a
larger common area of development or sale. Prior to initiating work, Contractor shall be
solely responsible for preparing and implementing a Storm Water Pollution Prevention
Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring,
implementing and complying with the provisions of the Permit and the SWPPP, including
the standard provisions, and monitoring and reporting requirements as required by the
Permit. The Permit requires the SWPPP to be a “living document” that changes as
necessary to meet the conditions and requirements of the job site as it progresses through
difference phases of construction and is subject to different weather conditions. It shall
be Contractor’s sole responsibility to update the SWPPP as necessary to address
conditions at the Project site.
3.10.1.3 Liability for Non-Compliance. Failure to comply with
laws, regulations, standards, ordinances, and permits listed in this Section 3.10.1 is a
violation of federal and state law. Pursuant to the indemnification provisions of this
Contract, Contractor hereby agrees to defend, indemnify and hold harmless City and its
directors, officials, officers, employees, volunteers and agents for any alleged violati ons.
In addition, City may seek damages from Contractor for any delay in completing the Work
in accordance with the Contract, if such delay is caused by or related to Contractor’s
failure to comply with the Permit.
3.10.1.4 Reservation of Right to Defend. City reserves the right
to defend any enforcement action brought against City for Contractor’s failure to comply
with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to
the indemnification provisions of this Contract, Contractor hereby agrees to be bound by,
and to reimburse City for the costs (including City’s attorney’s fees) associated with, any
settlement reached between City and the relevant enforcement entity.
3.10.1.5 Training. In addition to the standard of performance
requirements set forth in this Contract, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the work assigned to
them without impacting water quality in violation of the laws, regulations and policies
described in this Section 3.10.1. Contractor further warrants that it, its employees and
subcontractors will receive adequate training, as determined by City, regarding the
requirements of the laws, regulations and policies described in paragraph 3.11.1 as the y
may relate to the Work provided under this Contract. Upon request, City will provide the
Contractor with a list of training programs that meet the requirements of this paragraph.
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3.10.2 Environmental Quality Protection. City operates under a number
of environmental permits issued by various agencies. Contractor shall comply with all
requirements of applicable law for environmental rules and regulations. Any infractions of
applicable law by Contractor during the term of the Contract, which result in penalties, wi ll
be the responsibility of Contractor. If due to an action, inaction, or negligence by
Contractor, City becomes subject to non-compliance penalties, the cost of such penalties
shall be borne by Contractor. Contractor shall exercise care to preserve the n atural
landscape and vegetation, and shall conduct operations so as to prevent unnecessary
destruction, scarring, or defacing of the natural surroundings in the vicinity of the Work.
Movement of crews and equipment within the rights-of-way and over routes provided for
access to the Work shall be performed in a manner to prevent damage to property. When
no longer required, construction roads shall be restored to original contours. Upon
completion of the Project and following removal of construction facilitie s and required
cleanup, land used for construction purposes and not required for the completed
installation shall be scarified and regraded, as required, so that all surfaces are left in a
condition that will facilitate natural revegetation, provide for proper drainage, and prevent
erosion.
3.10.3 Safety. Contractor shall execute and maintain its work so as to
avoid injury or damage to any person or property. Contractor shall comply with the
requirements of the specifications relating to safety measures applicable in particular
operations or kinds of work. In carrying out its Work, Contractor shall at all times be in
compliance with all applicable local, state and federal laws, rules and regulations, and
shall exercise all necessary precautions for the safety of employees appropriate to the
nature of the Work and the conditions under which the Work is to be performed. Safety
precautions as applicable shall include, but shall not be limited to, adequate life protection
and lifesaving equipment; adequate illumin ation for underground and night operations;
instructions in accident prevention for all employees, such as machinery guards, safe
walkways, scaffolds, ladders, bridges, gang planks, confined space procedures,
trenching and shoring, fall protection and othe r safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and
adequate facilities for the proper inspection and maintenance of all safety measures.
Furthermore, Contractor shall prominently display the names and telephone numbers of
at least two medical doctors practicing in the vicinity of the Project, as well as the
telephone number of the local ambulance service, adjacent to all telephones at the Project
site.
3.10.4 Laws and Regulations. Contractor shall keep itself fully informed
of and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Contract or the Work, including all Cal/OSHA
requirements, and shall give all notices required by law. Contractor shall be liable for all
violations of such laws and regulations in connection with the Work. If Contractor
observes that the drawings or specifications are at variance with any law, rule or
regulation, it shall promptly notify City in writing. Any necessary changes shall be made
by written Change Order. If Contractor performs any Work knowing it to be contrary to
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such laws, rules and regulations and without giving written notice to City, Contractor shall
be solely responsible for all costs arising therefrom. City is a public entity of the State of
California subject to certain provisions of the Health & Safety Code, Government Code,
Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all
provisions of the law applicable to the public contracts of a public agency are a part of
this Contract to the same extent as though set forth herein and will be complied with.
Contractor shall defend, indemnify and hold City, its officials, directors, officers,
employees and agents free and harmless, pursuant to the indemnification provisions of
this Contract, from any claim or liability arising out of any failure or alleged failure to
comply with such laws, rules or regulations.
3.10.5 Permits and Licenses. Contractor shall be responsible for
securing and paying for all permits and licenses necessary to perform the Work.
Contractor will not be charged a fee for any City permits. Any ineligible contractor or
subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work
on this Project.
3.10.6 Trenching Work. If the Total Contract Price exceeds $25,000 and
if the Work governed by this Contract entails excavation of any trench or trenches five (5)
feet or more in depth, Contractor shall comply with all app licable provisions of the
California Labor Code, including Section 6705. To this end, Contractor shall submit for
City’s review and approval a detailed plan showing the design of shoring, bracing, sloping,
or other provisions to be made for worker protection from the hazard of caving ground
during the excavation of such trench or trenches. If such plan varies from the shoring
system standards, the plan shall be prepared by a registered civil or structural engineer.
3.10.7 Hazardous Materials and Differing Conditions. As required by
California Public Contract Code Section 7104, if this Contract involves digging trenches
or other excavations that extend deeper than four (4) feet below the surface, Contractor
shall promptly, and prior to disturbance of any condition s, notify City of: (1) any material
discovered in excavation that Contractor believes to be a 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; (2) subsurface or latent physical conditions at the site
differing from those indicated by information about the site made available by City prior
to deadline for submitting bids; and (3) unknown physical conditions of an unusual nature
at the site, different materially from those ordinarily encountered and generally recognized
as inherent in work of the character provided for in the Contract. Upon notification, City
shall promptly investigate the conditions to determine whether a Change Order is
appropriate. In the event of a dispute, Contractor shall not be excused from any
scheduled completion date and shall proceed with all Work to be performed under the
Contract, but shall retain all rights provided by the Contract or by law for making protests
and resolving the dispute.
3.10.8 Underground Utility Facilities. To the extent required by Section
4215 of the California Government Code, City shall compensate Contractor for the costs
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of: (1) locating and repairing damage to underground utility facilities not caused by the
failure of Contractor to exercise reasonable care; (2) removing or relocating underground
utility facilities not indicated in the construction drawings; and (3) equipment necessarily
idled during such work. Contractor shall not be assessed liquidated damages for delay
caused by failure of City to provide for removal or relocation of such utility facilities.
3.10.9 Air Quality.
3.10.9.1 Contractor must fully comply with all applicable laws,
rules and regulations in furnishing or using equipment and/or providing services,
including, but not limited to, emissions limits and permitting requirements imposed by the
California Air Resources Board (CARB). Although CARB limits and requirements are
more broad, Contractor shall specifically be aware of their application to “po rtable
equipment”, which definition is considered by CARB to include any item of equipment with
a fuel-powered engine. Contractor shall indemnify City against any fines or penalties
imposed by CARB, or any other governmental or regulatory agency for violations
of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this
Contract.
3.10.9.2 To the extent applicable, Contractor, shall comply, and
shall ensure all subcontractors comply, with all requirements of the most current version
of CARB including, without limitation, all applicable terms of Title 13, California Code of
Regulations Division 3, Chapter 9 and all pending amendments (“CARB Regulation”).
Contractor must submit with execution of this Contract a valid Certificate of Reported
Compliance (“CRC”) for the Contractor’s and its subcontractors fleet (including any
applicable leased equipment or vehicles). Throughout Project, and for three (3) y ears
thereafter, Contractor shall make available for inspection and copying any and all
documents or information associated with Contractor’s and subcontractors’ fleet
including, without limitation, the CRCs, fuel/refueling records, maintenance records,
emissions records, and any other information the Contractor is required to produce, keep
or maintain pursuant to the CARB Regulation upon two (2) calendar days’ notice from
City. Contractor shall be solely liable for any and all costs associated with complying with
the CARB Regulation as well as for any and all penalties, fines, damages, or costs
associated with any and all violations, or failures to comply with the CARB Regulation.
Contractor shall defend, indemnify and hold harmless City, its officials, officers,
employees and authorized volunteers free and harmless from any claims, liabilities, costs,
penalties
3.10.10 State Recycling Mandates. Contractor shall comply with all
applicable law regarding the diversion of construction and demolition debris and other
waste from the Project, including, not but limited to, the California Building Standards
Code and any applicable amendments. All costs incurred for these waste diversion
efforts shall be the responsibility of the Contractor.
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3.10.11 Inspection Of Site. Contractor has visited sites where Work is to
be performed and has become acquainted with all conditions affecting the Work.
Contractor warrants that it has made such examinations as it deems necessary to
determine the condition of the Work sites, its accessibility to materials, workmen and
equipment, and to determine the Contractor’s ability to protect existing surface and
subsurface improvements. No claim for allowances–time or money–will be allowed as to
such matters.
3.10.12 Field Measurements. Contractor shall make field measurements,
verify field conditions and shall carefully compare such field measurements and
conditions and other information known to Contractor with the Contract Documents before
commencing activities. Errors, inconsistencies or omissions discovered shall be reported
to City immediately and prior to performing any work or altering the condition.
3.11 Completion of Work. When Contractor determines that it has completed
the Work required herein, Contractor shall so notify City in writing and shall furnish all
labor and material releases required by this Contract. City shall thereupon inspect the
Work. If the Work is not acceptable to City, City shall indicate to Contractor in writing the
specific portions or items of Work which are unsatisfactory or inco mplete. Once
Contractor determines that it has completed the incomplete or unsatisfactory Work,
Contractor may request a re-inspection by City. Once the Work is acceptable to City, City
shall pay to Contractor the Total Contract Price remaining to be pai d, less any amount
which City may be authorized or directed by law to retain. Payment of retention proceeds
due to Contractor shall be made in accordance with Section 7107 of the California Public
Contract Code.
3.12 Claims; Government Code Claim Compliance.
3.12.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the
California Public Contract Code prescribes a process utilizing informal conferences, non-
binding judicial supervised mediation, and judicial arbitration to resolve disputes on
construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the
Public Contract Code prescribes a process for negotiation and mediation to resolve
disputes on construction claims. The intent of this Section is to implement Sections 20104
et seq. and Section 9204 of the California Public Contract Code. This Section shall be
construed to be consistent with said statutes.
3.12.2 Claims. For purposes of this Section, “Claim” means a separate
demand by the Contractor, after a change order duly requested in ac cordance with the
terms of this Contract has been denied by City, for (A) a time extension, (B) payment of
money or damages arising from Work done by or on behalf of the Contractor pursuant to
the Contract, or (C) an amount the payment of which is disputed by City. A “Claim” does
not include any demand for payment for which the Contractor has failed to provide notice,
request a Change Order, or otherwise failed to follow any procedures contained in the
Contract Documents.
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3.12.3 Filing Claims. Claims governed by this Section may not be filed
unless and until the Contractor completes all procedures for giving notice of delay or
change and for the requesting of a time extension or Change Order, including but not
necessarily limited to the Change Order procedures co ntained herein, and Contractor’s
request for a change has been denied in whole or in part. Claims governed by this Section
must be filed no later than fourteen (14) days after a request for change has been denied
in whole or in part or after any other eve nt giving rise to the Claim. The Claim shall be
submitted in writing to City and shall include on its first page the following in 16 point
capital font: “THIS IS A CLAIM.” Furthermore, the claim shall include the documents
necessary to substantiate the claim. Nothing in this Section is intended to extend the time
limit or supersede notice requirements otherwise provided by contract for the filing of
claims, including all requirements pertaining to compensation or payment for extra Work,
disputed Work, and/or changed conditions. Failure to follow such contractual
requirements shall bar any claims or subsequent lawsuits for compensation or payment
thereon.
3.12.4 Supporting Documentation. The Contractor shall submit all
claims in the following format:
3.12.4.1 Summary of claim merit and price, reference Contract
Document provisions pursuant to which the claim is made
3.12.4.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
3.12.4.3 Chronology of events and correspondence
3.12.4.4 Analysis of claim merit
3.12.4.5 Analysis of claim cost, including calculations and
supporting documents
3.12.4.6 Time impact analysis in CPM format
3.12.5 City’s Response. Upon receipt of a Claim pursuant to this
Section, City shall conduct a reasonable review of the Claim and, within a period not to
exceed 45 days of receipt of the Claim, or as extended by mutual agreement, shall provide
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the Contractor a written statement identifying what portion of the Claim is disputed and
what portion is undisputed. Any payment due on an un disputed portion of the Claim will
be processed and made within 60 days after City issues its written statement.
3.12.5.1 If City needs approval from its governing body to
provide the Contractor a written statement identifying the disputed portion and the
undisputed portion of the Claim, and the governing body does not meet within the 45 days
or within the mutually agreed to extension of time following receipt of a Claim sent by
registered mail or certified mail, return receipt requested, City shall have up to three (3)
days following the next duly publicly noticed meeting of the governing body after the 45 -
day period, or extension, expires to provide the Contractor a written statement identifying
the disputed portion and the undisputed portion.
3.12.5.2 Within 30 days of receipt of a Claim, City may request
in writing additional documentation supporting the Claim or relating to defenses or claims
City may have against the Contractor. If additional information is thereafter required, it
shall be requested and provided pursuant to this subdivision, upon mutual agreement of
City and the Contractor. City’s written response to the Claim, shall be submitted to the
Contractor within 30 Days (if the Claim is less than $50,000, within 15 Days) after receipt
of the additional documentation, or within a period of time no greater than that taken by
the Contractor in producing the additional information or requested documentation,
whichever is greater.
3.12.6 Meet and Confer. If the Contractor disputes City’s written
response, or City fails to respond within the time prescribed, the Contractor may so notify
City, in writing, within 15 Days of receipt of City’s response or City’s failure to respond,
and demand an informal conference to meet and confer for settlement of the issues in
dispute. Upon receipt of a demand, City shall schedule a meet and confer conference
within 30 Days for settlement of the dispute.
3.12.7 Mediation. Within 10 business days following the conclusion of
the meet and confer conference, if the Claim or any portion of the Claim r emains in
dispute, City shall provide the Contractor a written statement identifying the portion of the
Claim that remains in dispute and the portion that is undisputed. Any payment due on an
undisputed portion of the Claim shall be processed and made with in 60 Days after City
issues its written statement. Any disputed portion of the Claim, as identified by the
Contractor in writing, shall be submitted to nonbinding mediation, with City and the
Contractor sharing the associated costs equally. City and Contractor shall mutually agree
to a mediator within 10 business days after the disputed portion of the Claim has been
identified in writing, unless the Parties agree to select a mediator at a later time.
3.12.7.1 If the Parties cannot agree upon a mediator, each Party
shall select a mediator and those mediators shall select a qualified neutral third party to
mediate with regard to the disputed portion of the claim. Each Party shall bear the fees
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and costs charged by its respective mediator in connection with the selection of the
neutral mediator.
3.12.7.2 For purposes of this section, mediation includes any
nonbinding process, including, but not limited to, neutral evaluation or a dispute review
board, in which an independent third party or board assists the Parties in dispute
resolution through negotiation or by issuance of an evaluation. Any mediation utilized
shall conform to the timeframes in this section.
3.12.7.3 Unless otherwise agreed to by City and the Contractor
in writing, the mediation conducted pursuant to this section shall excuse any further
obligation under Section 20104.4 to mediate after litigation has been commenced.
3.12.7.4 The mediation shall be held no earlier than the date the
Contractor completes the Work or the date that the Contractor last performs Work,
whichever is earlier. All unresolved Claims shall be considered jointly in a single
mediation, unless a new unrelated Claim arises after mediation is completed.
3.12.8 Procedures After Mediation. If following the mediation, the Claim
or any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1
(commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3
of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the
running of the period of time within which a claim must be filed shall be tolled from the
time the Contractor submits his or her written Claim pursuant to subdivision (a) until the
time the Claim is denied, including any period of time utilized by the meet and confer
conference or mediation.
3.12.9 Civil Actions. The following procedures are established for all civil
actions filed to resolve Claims of $375,000 or less:
3.12.9.1 Within 60 Days, but no earlier than 30 Days, following
the filing or responsive pleadings, the court shall submit the matter t o non-binding
mediation unless waived by mutual stipulation of both Parties or unless mediation was
held prior to commencement of the action in accordance with Public Contract Code
section 9204 and the terms of these procedures. The mediation process shall provide for
the selection within 15 Days by both Parties of a disinterested third person as mediator,
shall be commenced within 30 Days of the submittal, and shall be concluded within 15
Days from the commencement of the mediation unless a time requireme nt is extended
upon a good cause showing to the court.
3.12.9.2 If the matter remains in dispute, the case shall be
submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notw ithstanding Section
1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section
2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any
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proceeding brought under this subdivision consistent with the rules pertaining to judicial
arbitration.
3.12.9.3 In addition to Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when
possible, be experienced in construction law, and (B) any party appealing an arbitration
award who does not obtain a more favorable judgment shall, in addition to payment of
costs and fees under that chapter, also pay the attorney’s fees on appeal of the other
party.
3.12.10 Government Code Claim Procedures.
3.12.10.1 This section does not apply to tort claims and nothing
in this section is intended nor shall be construed to change the time periods for filing tort
claims or actions specified by Chapter 1 (commending with Section 900) and Chapter 2
(commencing with Section 910) of Part 3 of Division 3.5 of Title 1 of the Government
Code.
3.12.10.2 In addition to any and all Contract requirements
pertaining to notices of and requests for adjustments to the Contract Time, Contract Price,
or compensation or payment for extra work, disputed work, claims and/or changed
conditions, Contractor must comply with the claim procedures set forth in Government
Code sections 900 et seq. prior to filing any lawsuit against City.
3.12.10.3 Such Government Code claims and any subsequent
lawsuit based upon the Government Code claims shall be limited to those matters that
remain unresolved after all procedures pertaining to adjustment of the Contract Time,
Contract Price, or compensation or payment for extra work, disputed work, claims, and/or
changed conditions have been followed by Contractor. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise
satisfied as specified herein, Contractor may not file any action against City.
3.12.10.4 A Government Code claim must be filed no earlier than
the date the Work is completed or the date the Contractor last performs work on the
Project, whichever occurs first. A Government Code claim shall be inclusive of all
unresolved Claims known to the Contractor excepting only new unrelated Claims that
arise after the Government Code claim is submitted.
3.12.11 Non-Waiver. City’s failure to respond to a Claim from the
Contractor within the time periods described in this section or to otherwise meet the time
requirements of this section shall result in the Claim being deemed rejected in its entirety
and shall not constitute a waiver of any rights under this section.
3.13 Loss and Damage. Except as may otherwise be limited by law, Contractor
shall be responsible for all loss and damage which may arise out of the nature of the Work
agreed to herein, or from the action of the elements, or from any unforeseen difficulties
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which may arise or be encountered in the prosecution of the Work until the same is fully
completed and accepted by City. In the event of damage proximately caused by an Act
of God, as defined by Section 7105 of the Public Contract Code, City may terminate this
Contract pursuant to the termination provisions in this Contract; provided, however, that
City needs to provide Contractor with only one (1) day advanced written notice.
3.14 Indemnification.
3.14.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold City, its officials, employees, agents and
volunteers free and harmless from any and all claims, demands, causes of action, suits,
actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements,
loss, damage or injury of any kind, in law or equity, regardless of whether the allegations
are false, fraudulent, or groundless, to property or persons, including wrongful death,
(collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts,
errors or omissions, or willful misconduct of Contractor, its officials, officers, employees,
subcontractors, consultants or agents in connection with the performance of the
Contractor’s services, the Project or this Contract, including without limitation the payment
of all expert witness fees, attorneys’ fees and other related costs and expenses.
Notwithstanding the foregoing, to the extent required by Civil Code section 2782,
Contractor’s indemnity obligation shall not apply to the extent such loss or damage is
caused by the sole or active negligence or willful misconduct of City.
3.14.2 Additional Indemnity Obligations. Contractor shall defend, with
counsel of City’s choosing and at Contractor’s own cost, expense and risk, any and all
Claims covered by this section that may be brought or instituted against City or its officials,
employees, agents and authorized volunteers. In addition, Contractor shall pay and
satisfy any judgment, award or decree that may be rendered against City or its officials,
employees, agents and authorized volunteers as part of any such claim, suit, action or
other proceeding. Contractor shall also reimburse City for the cost of any settlement paid
by City or its officials, employees, agents and authorized volunteers as part of any such
claim, suit, action or other proceeding. Such reimbursement shall include payment for
City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse
City and its officials, employees, agents and authorized volunteers, for any and all legal
expenses and costs incurred by each of them in connection therewith or in enforcing the
indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration
or termination of this Contract, and shall not be restricted to insurance proceeds, if any,
received by City, its officials, employees, agents and authorized volunteers.
3.15 Insurance.
3.15.1 Time for Compliance. Contractor shall not commence Work
under this Contract until it has provided evidence satisfactory to City that it has secured
all insurance required under this section. In addition, Contractor shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence
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satisfactory to City that the subcontractor has secured all insurance required under this
section. Failure to provide and maintain all required insurance shall be grounds for City
to terminate this Contract for cause.
3.15.2 Minimum Requirements. Contractor shall, at its expense,
procure and maintain for the duration of the Contract insurance against claims for injuries
to persons or damages to property which may arise from or in connection w ith the
performance of the Work hereunder by Contractor, its agents, representatives,
employees or subcontractors. Contractor shall also require all of its subcontractors to
procure and maintain the same insurance for the duration of the Contract. Such insurance
shall meet at least the following minimum levels of coverage:
3.15.2.1 Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 00 01) OR
Insurance Services Office Owners and Contractors Protective Liability Coverage Form
(CG 00 09 11 88) (coverage for operations of designated contractor); (2) Automobile
Liability: Insurance Services Office Business Auto Coverage form number CA 00 01,
code 1 (any auto); (3) Workers’ Compensation and Employer’s Liability: Workers’
Compensation insurance as required by the State of California and Employer’s Liability
Insurance; and (4) Builders’/All Risk: Builders’/All Risk insurance covering for all risks of
loss, including explosion, collapse, underground excavation and removal of lateral
support (and including earthquakes and floods if requested by City). Policies shall not
contain exclusions contrary to this Contract.
3.15.2.2 Minimum Limits of Insurance. Contractor shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence and
$4,000,000 general aggregate for bodily injury, personal injury and property damage; (2)
Automobile Liability: $2,000,000 per accident for bodily injury and property damage; (3)
Workers’ Compensation and Employer’s Liability: Workers’ compensation limits as
required by the Labor Code of the State of California. Employer’s Liability limits of
$1,000,000 each accident, policy limit bodily injury or disease, and each employee bodily
injury or disease; and (4) Builders’/All Risk: Completed value of the project. Defense
costs shall be available in addition to the limits. Notwithstanding the minimum limits
specified herein, any available coverage shall be provided to the parties required to be
named as additional insureds pursuant to this Contract.
3.15.2.3 Notices; Cancellation or Reduction of Coverage. At
least fifteen (15) days prior to the expiration of any such policy, evidence showing that
such insurance coverage has been renewed or extended shall be filed with City. If such
coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after
receipt of written notice of such cancellation or reduction of coverage, file with City
evidence of insurance showing that the required insurance has been reinstated or has
been provided through another insurance company or companies. In the event any policy
of insurance required under this Contract does not comply with these specifications or is
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canceled and not replaced, City has the right but not the duty to obtain the insurance it
deems necessary and any premium paid by City will be promptly reimbursed by
Contractor or City may withhold amounts sufficient to pay premium fro m Contractor
payments. In the alternative, City may suspend or terminate this Contract.
3.15.3 Insurance Endorsements. The insurance policies shall contain
the following provisions, or Contractor shall provide endorsements (amendments) on
forms supplied or approved by City to add the following provisions to the insurance
policies:
3.15.3.1 General Liability. (1) Such policy shall give City, its
officials, employees, agents and volunteers additional insured status using ISO
endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact
same coverage, with respect to the Work or operations performed by or on behalf of
Contractor, including materials, parts or equipment furnished in connection with such
work; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation
which may be obtained by the Contractor or any insurer by virtue of payment of any loss
or any coverage provided to any person named as an additional insured pursuant to this
Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the
insurance coverage shall be primary insurance as respects City, its officials, employees,
agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess
of Contractor’s scheduled underlying coverage. Any insurance or self -insurance
maintained by City, its officials, employees, agents and volunteers shall be excess of
Contractor’s insurance and shall not be called upon to contribute with it.
3.15.3.2 Automobile Liability. (1) Such policy shall give City, its
officials, employees, agents and volunteers additional insured status with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies
shall waive or shall permit Contractor to waive all rights of subrogation which may be
obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage
provided to any person named as an additiona l insured pursuant to this Contract, and
Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage
shall be primary insurance as respects City, its officials, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of
Contractor’s scheduled underlying coverage. Any insurance or self -insurance maintained
by City, its officials, employees, agents and volunteers shall be excess of Contractor’s
insurance and shall not be called upon to contribute with it in any way.
3.15.3.3 Workers’ Compensation and Employer’s Liability
Coverage. The insurer shall agree to waive all rights of subrogation against City, its
officials, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by Contractor.
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3.15.3.4 All Coverages. Each insurance policy required by this
Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided,
reduced or canceled except after thirty (30) days prior written notice by certified mail,
return receipt requested, has been given to City; and (2) any failure to comply with
reporting or other provisions of the policies, including breaches of warranties, shall not
affect coverage provided to City, its officials, employees, agents and volunteers.
3.15.4 Builders’/All Risk Policy Requirements. The builders’/all risk
insurance shall provide that City be named as loss payee. In addition, the insurer shall
waive all rights of subrogation against City.
3.15.5 Separation of Insureds; No Special Limitations. All insurance
required by this Section shall contain standard separation of insureds provisions. In
addition, such insurance shall not contain any special limitations on the scope of
protection afforded to City, its officials, employees, agents and volunteers.
3.15.6 Professional Liability Insurance. All architects, engineers,
consultants or design professionals retained by Contractor shall also procure and
maintain, for a period of five (5) years following completion of the C ontract, errors and
omissions liability insurance with a limit of not less than $1,000,000 per occurrence. This
insurance shall name City, its directors, officials, officers, employees, agents and
volunteers as additional and insureds with respect to Work performed, and shall otherwise
comply with all requirements of this Section. Defense costs shall be paid in addition to
the limits.
3.15.7 Deductibles and Self-Insurance Retentions. Any deductibles or
self-insured retentions must be declared to and approved by City. Contractor shall
guarantee that, at the option of City, either: (1) the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects City, its officials, employees, agents
and authorized volunteers; or (2) the Contractor shall procure a bond or other financial
guarantee acceptable to City guaranteeing payment of losses and related investigation
costs, claims and administrative and defense expenses.
3.15.8 Acceptability of Insurers. Insurance is to be placed with insurers
with a current A.M. Best’s rating no less than A:VII, licensed to do business in California,
and satisfactory to City. Exception may be made for the State Compensation Insurance
Fund when not specifically rated.
3.15.9 Verification of Coverage. Contractor shall furnish City with
original certificates of insurance and endorsements effecting coverage required by this
Contract on forms satisfactory to City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage
on its behalf, and shall be on forms supplied or approved by City. All certificates and
endorsements must be received and approved by City before work commences. City
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reserves the right to require complete, certified copies of all requir ed insurance policies,
at any time.
3.15.10 Subcontractors. All subcontractors shall meet the requirements
of this Section before commencing Work. Contractor shall furnish separate certificates
and endorsements for each subcontractor. Subcontractor policies of General Liability
insurance shall name City, its officials, employees, agents and authorized volunteers as
additional insureds using form ISO 20 38 04 13 or endorsements providing the exact
same coverage. All coverages for subcontractors shall be subject to all of the
requirements stated herein except as otherwise agreed to by City in writing.
3.15.11 Reporting of Claims. Contractor shall report to City, in addition to
Contractor’s insurer, any and all insurance claims submitted by Contractor in connection
with the Work under this Contract.
3.16 Bond Requirements.
3.16.1 Payment Bond. If required by law or otherwise specifically
requested by City in Exhibit “C” attached hereto and incorporated herein by reference,
Contractor shall execute and provide to City concurrently wit h this Contract a Payment
Bond in an amount required by City and in a form provided or approved by City. If such
bond is required, no payment will be made to Contractor until the bond has been received
and approved by City.
3.16.2 Performance Bond. If specifically requested by City in Exhibit “C”
attached hereto and incorporated herein by reference, Contractor shall execute and
provide to City concurrently with this Contract a Performance Bond in an amount required
by City and in a form provided or approved by City. If such bond is required, no payment
will be made to Contractor until the bond has been received and approved by City.
3.16.3 Bond Provisions. Should, in City’s sole opinion, any bond
become insufficient or any surety be found to be unsatisfactory, Contrac tor shall renew
or replace the effected bond within (ten) 10 days of receiving notice from City. In the
event the surety or Contractor intends to reduce or cancel any required bond, at least
thirty (30) days prior written notice shall be given to City, and Contractor shall post
acceptable replacement bonds at least ten (10) days prior to expiration of the original
bonds. No further payments shall be deemed due or will be made under this Contract
until any replacement bonds required by this Section are accepted by City. To the extent,
if any, that the Total Contract Price is increased in accordance with the Contract,
Contractor shall, upon request of City, cause the amount of the bond to be increased
accordingly and shall promptly deliver satisfactory evide nce of such increase to City. If
Contractor fails to furnish any required bond, City may terminate the Contract for cause.
3.16.4 Surety Qualifications. Only bonds executed by an admitted
surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be
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accepted. If a California-admitted surety insurer issuing bonds does not meet these
requirements, the insurer will be considered qualified if it is in conformance with
Section 995.660 of the California Code of Civil Procedure, and proof of such is provided
to City.
3.17 Warranty. Contractor warrants all Work under the Contract (which for
purposes of this Section shall be deemed to include unauthorized work which has not
been removed and any non-conforming materials incorporated into the Work) to be of
good quality and free from any defective or faulty material and workmanship. Contractor
agrees that for a period of one year (or the period of time specified elsewhere in the
Contract or in any guarantee or warranty provided by any manufacturer or supplier of
equipment or materials incorporated into the Work, whichever is later) after the date of
final acceptance, Contractor shall within ten (10) days after being notified in writing by
City of any defect in the Work or non-conformance of the Work to the Contract, commence
and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at
its sole cost and expense. Contractor shall act sooner as requested by City in response
to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and
replace any portions of the Work (or work of other contractors) damaged by its defective
Work or which becomes damaged in the course of repairing or replacing defective Work.
For any Work so corrected, Contractor’s obligation hereunder to correct defective Work
shall be reinstated for an additional one year period, commencing with the date of
acceptance of such corrected Work. Contractor shall perform such tests as City may
require to verify that any corrective actions, including, without limitation, redesign, repairs,
and replacements comply with the requirements of the Contract. All costs associated
with such corrective actions and testing, including the removal, replacement, and
reinstitution of equipment and materials necessary to gain access, shall be the sole
responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers
and manufacturers with respect to any portion of the Work, whether express or implied,
are deemed to be obtained by Contractor for the benefit of City, regardless of whether or
not such warranties and guarantees have been transferred or assigned to City by
separate agreement and Contractor agrees to enforce such warranties and guarantees,
if necessary, on behalf of City. In the event that Contractor fails to perform its obligations
under this Section, or under any other warranty or guaranty under this Contract, to the
reasonable satisfaction of City, City shall have the right to correct and replace any
defective or non-conforming Work and any work damaged by such work or the
replacement or correction thereof at Contractor’s sole expense. Contractor shall be
obligated to fully reimburse City for any expenses incurred hereunder upon demand.
3.18 Employee/Labor Certifications.
3.18.1 Contractor’s Labor Certification. By its signature hereunder,
Contractor certifies that he is aware of the provisions of Section 3700 of the California
Labor Code which require every employer to be insured against liability for Worker’s
Compensation or to undertake self-insurance in accordance with the provisions of that
Code, and agrees to comply with such provisions before commencing the performance
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of the Work. A certification form for this purpose, which is attached to this Contract as
Exhibit “D” and incorporated herein by reference, shall be executed simultaneously with
this Contract.
3.18.2 Equal Opportunity Employment. Contractor represents that it is
an equal opportunity employer and that it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex,
age or other interests protected by the State or Federal Constitutions. Such non -
discrimination shall include, but not be limited to, all activities related to initial employme nt,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or
termination.
3.18.3 Verification of Employment Eligibility. By executing this Contract,
Contractor verifies that it fully complies with all requirements and restrictions of stat e and
federal law respecting the employment of undocumented aliens, including, but not limited
to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time, and shall require all subcontractors and sub -subcontractors to comply with the
same.
3.19 Termination. This Contract may be terminated by City at any time, either
with our without cause, by giving Contractor three (3) days advance written notice. In the
event of termination by City for any reason other than the fault of Contracto r, City shall
pay Contractor for all Work performed up to that time as provided herein. In the event of
breach of the Contract by Contractor, City may terminate the Contract immediately
without notice, may reduce payment to Contractor in the amount necessary to offset City’s
resulting damages, and may pursue any other available recourse against Contractor.
Contractor may not terminate this Contract except for cause. In the event this Contract
is terminated in whole or in part as provided, City may procur e, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
Further, if this Contract is terminated as provided, City may require Contractor to provide
all finished or unfinished documents, data, diagrams, drawings, materials or other matter
prepared or built by Contractor in connection with its performance of this Contract.
Contractor shall be required to provide such document and other information within fifteen
(15) days of the request.
3.20 General Provisions.
3.20.1 City’s Representative. City hereby designates the General
Manager, or his or her designee, to act as its representative for the performance of this
Contract (“City’s Representative”). City’s Representative shall have the power to act on
behalf of City for all purposes under this Contract. Contractor shall not accept direction
or orders from any person other than City’s Representative or his or her designee.
3.20.2 Contractor’s Representative. Before starting the Work,
Contractor shall submit in writing the name, qualifications and experience of its proposed
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representative who shall be subject to the review and approval of City (“′Contractor’s
Representative”). Following approval by City, Contractor’s Representative shall have full
authority to represent and act on behalf of Contractor for all purposes under this Contract.
Contractor’s Representative shall supervise and direct the Work, using his best skill and
attention, and shall be responsible for all construction means, methods, techniques,
sequences and procedures and for the satisfactory coordination of all portions of the Work
under this Contract. Contractor’s Representative shall devote full time to the Project and
either he or his designee, who shall be acceptable to City, shall be present at the Wo rk
site at all times that any Work is in progress and at any time that any employee or
subcontractor of Contractor is present at the Work site. Arrangements for responsible
supervision, acceptable to City, shall be made for emergency Work which may be
required. Should Contractor desire to change its Contractor’s Representative, Contractor
shall provide the information specified above and obtain City’s written approval.
3.20.3 Contract Interpretation. Should any question arise regarding the
meaning or import of any of the provisions of this Contract or written or oral instructions
from City, the matter shall be referred to City’s Representative, whose decision shall be
binding upon Contractor.
3.20.4 Anti-Trust Claims. This provision shall be operative if this
Contract is applicable to California Public Contract Code Section 7103.5. In entering into
this Contract to supply goods, services or materials, Contractor hereby offers and agrees
to assign to City all rights, title, and interest in and to all causes of action it may have
under Section 4 of the Clayton Act (15 U.S.C. Section 15) or 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
the Contract. This assignment shall be made and become effective at the time City tender
final payment to Contractor, without further acknowledgment by the Parties.
3.20.5 Notices. All notices hereunder and communications regarding
interpretation of the terms of the Contract or changes thereto shall be provided by the
mailing thereof by registered or certified mail, return receipt requested, postage prepaid
and addressed as follows:
CONTRACTOR:
KRGS Roofing Inc.
660 Weng Star Street
Beaumont, CA 92223
Attn: Robert Flores, Owner
CITY:
City of Arroyo Grande
300 E. Branch Street
City of Arroyo Grande, CA 93420
Attn: Matthew Downing, City Manager
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Any notice so given shall be considered received by the other Party three (3) days after
deposit in the U.S. Mail as stated above and addressed to the Party at the above address.
Actual notice shall be deemed adequate notice on the date actual notice occurred,
regardless of the method of service.
3.20.6 Time of Essence. Time is of the essence in the performance of
this Contract.
3.20.7 Assignment Forbidden. Contractor shall not, either voluntarily or
by action of law, assign or transfer this Contract or any obligation, right, title or interest
assumed by Contractor herein without the prior written consent of City. If Contractor
attempts an assignment or transfer of this Contract or any obligation, right, title or interest
herein, City may, at its option, terminate and revoke the Contract and shall thereupon be
relieved from any and all obligations to Contractor or its assignee or transferee.
3.20.8 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.20.9 Laws; Venue. This Contract shall be interpreted in accordance
with the laws of the State of California. If any action is brought to interp ret or enforce any
term of this Contract, the action shall be brought in a state or federal court situated in the
County of Ventura, State of California.
3.20.10 Counterparts. This Contract may be executed in counterparts,
each of which shall constitute an original.
3.20.11 Successors. The Parties do for themselves, their heirs,
executors, administrators, successors, and assigns agree to the full performance of all of
the provisions contained in this Contract.
3.20.12 Solicitation. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that
it has not paid nor has it agreed to pay any company or person, othe r than a bona fide
employee working solely for Contractor, any fee, commission, percentage, brokerage fee,
gift or other consideration contingent upon or resulting from the award or making of this
Contract. For breach or violation of this warranty, City shall have the right to terminate
this Contract without liability.
3.20.13 Conflict of Interest. Contractor maintains and warrants that it has
not employed nor retained any company or person, other than a bona fide employee
working solely for Contractor, to solicit or secure this Contract. Further, Contractor
warrants that it has not paid nor has it agreed to pay any company or person, other than
a bona fide employee working solely for Contractor, any fee, commission, percentage,
brokerage fee, gift or other consideration contingent upon or resulting from the award or
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making of this Contract. For breach or violation of this warranty, City shall have the right
to rescind this Contract without liability. For the term of this Contract, no director, official,
officer or employee of City, during the term of his or her service with City, shall have any
direct interest in this Contract, or obtain any present or anticipated material benefit arising
therefrom. In addition, Contractor agrees to file, or to cause its employ ees or
subcontractors to file, a Statement of Economic Interest with City’s Filing Officer as
required under state law in the performance of the Work.
3.20.14 Certification of License.
3.20.14.1 Contractor certifies that as of the date of execution of
this Contract, Contractor has a current contractor’s license of the classification indicated
below under Contractor’s signature.
3.20.14.2 Contractors are required by law to be licensed and
regulated by the Contractors’ State License Board which has jurisdiction to investigate
complaints against contractors if a complaint regarding a patent act or omission is filed
within four (4) years of the date of the alleged violation. A complaint regarding a latent
act or omission pertaining to structural defects must be filed within ten (10) years of the
date of the alleged violation. Any questions concerning a contractor may be referred to
the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California
95826.
3.20.15 Authority to Enter Contract. Each Party warrants that the
individuals who have signed this Contract have the legal power, right and authority to
make this Contract and bind each respective Party.
3.20.16 Entire Contract. This Contract contains the entire agreement of
the Parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements.
3.20.17 Non-Waiver. None of the provisions of this Contract shall be
considered waived by either party, unless such waiver is specifically specified in writing.
3.20.18 City’s Right to Employ Other Contractors. City reserves right to
employ other contractors in connection with this Project or other projects.
[Signatures on Next Page]
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ATTACHMENT 2
BB&K (2023) -29- PROFESSIONAL SERVICES AGREEMENT
SIGNATURE PAGE FOR CONSTRUCTION CONTRACT
BETWEEN CITY OF ARROYO GRANDE
AND KRGS ROOFING, INC
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
date first written above.
CITY OF ARROYO GRANDE
Approved:
By: ____________________________
Matthew Downing, City Manager
ATTEST:
By: ____________________________
Jessica Matson, City Clerk
APPROVED AS TO FORM:
By: ____________________________
Isaac Rosen, City Attorney
KRGS ROOFING, INC
[If Corporation, TWO SIGNATURES,
President OR Vice President AND
Secretary OR Treasurer REQUIRED]
By:_______________________________
Robert Flores, Owner
robert@krgsroofing.com
By:_______________________________
Millie Gomez, Office Manager
admin@krgsroofing.com
C-39 No. 1081419
Contractor’s License Number and
Classification
1001132779
DIR Registration Number
Page 184 of 427
ATTACHMENT 2
Page 30 of 43
EXHIBIT “A”
SCHEDULE
45 Working Days
EXHIBIT “B”
SCOPE OF WORK:
PLANS AND TECHNICAL SPECIFICATIONS
BID BOOK DATED APRIL 29, 2026, INCLUDING APPENDIX A (ROOF
ASSESSMENTS) AND APPENDIX B (LIMITED ASBESTOS SURVEYS) AND
ADDENDUM 1 DATED MAY 18, 2026
Page 185 of 427
ATTACHMENT 2
Page 31 of 43
EXHIBIT “C”
SPECIAL CONDITIONS
ARTICLE 1. BONDS
Concurrently with this Contract, the Contractor shall deliver to City four identical
counterparts of the Performance Bond and Payment Bond on the forms supplied by City
and included as Exhibit “F” to the Contract. The surety supplying the bond must be an
admitted surety insurer, as defined in Code of Civil Procedure Section 995.120,
authorized to do business as such in the State of California and satisfactory to City. The
Performance Bond and the Payment Bond shall be for one hundred percent (100%) of
the Total Contract Price.
Page 186 of 427
ATTACHMENT 2
Page 32 of 43
EXHIBIT “D”
Page 187 of 427
ATTACHMENT 2
Page 33 of 43
EXHIBIT “E”
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors
that wish to bid on, be listed in a bid proposal, or enter i nto a contract to perform public
work must be registered with the Department of Industrial Relations. See
http://www.dir.ca.gov/Public-Works/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor’s and
subcontractors’ current registration with the Department of Industrial Relations to perform
public work.
Contractor hereby certifies that it is aware of the registration requirements set forth in
Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with
the Department of Industrial Relations.1
Name of Contractor: KRGS Roofing, Inc.
DIR Registration Number: 1001132779
DIR Registration Expiration:__________________________
Small Project Exemption: _____ Yes or __X___ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further
acknowledges:
1. Contractor shall maintain a current DIR registration for the duration of the project.
2. Contractor shall include the requirements of Labor Code sections 1725.5 and
1771.1 in its contract with subcontractors and ensure that all subcontractors are
registered at the time of bid opening and maintain registration status for the
duration of the project.
3. Failure to submit this form or comply with any of the above requirements may result
in a finding that the bid is non-responsive.
Name of Contractor:____________________
Signature:
Name and Title: Dated: ________________
1 If the Project is exempt from the contractor registration requirements pursuant to the small project
exemption under Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project
Exemption.”
Page 188 of 427
ATTACHMENT 2
Page 34 of 43
EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
Page 189 of 427
ATTACHMENT 2
Page 35 of 43
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Arroyo Grande (hereinafter referred to as “City”) has
awarded to ____________________, (hereinafter referred to as the “Contractor”)
_______________________ an agreement for ______________________________
(hereinafter referred to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in
the Contract for the Project dated ________________, (hereinafter referred to as
“Contract Documents”), the terms and conditions of which are expressly incorporated
herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms
thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and
_____________________________________________ as Surety, a corporation
organized and duly authorized to transact business under the laws of the State of
California, are held and firmly bound unto City in the sum of
___________________________ DOLLARS, ($____________), said sum being not less
than one hundred percent (100%) of the total amount of the Contract, for which amount
well and truly to be made, we bind ourselves, our heirs, executors and administrators,
successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, 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 agreements in the
Contract Documents and any alteration thereof made as therein provided, on its part, to
be kept and performed at the time and in the manner therein specified, and in all respects
according to their intent and meaning; and shall faithfully fulfill all obligations including the
one-year guarantee of all materials and workmanship; and shall indemnify and save
harmless City, its officers and agents, as stipulated in said Contract Documents, then this
obligation shall become null and void; otherwise it shall be and remain in full force and
effect.
As a condition precedent to the satisfactory completion of the Contract Documents,
unless otherwise provided for in the Contract Documents, the above obligation shall hold
good for a period of one (1) year after the acceptance of the work by City, during which
time if Contractor shall fail to make full, complete, and satisfactory repair and
replacements and totally protect City from loss or damage resulting from or caused by
defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all
such obligations. The obligations of Surety hereunder shall continue so long as any
obligation of Contractor remains. Nothing herein shall limit City’s rights or the Contractor
or Surety’s obligations under the Contract, law or equity, including, but not limited to,
California Code of Civil Procedure section 337.15.
Page 190 of 427
ATTACHMENT 2
Page 36 of 43
Whenever Contractor shall be, and is declared by City to be, in default under the Contract
Documents, the Surety shall remedy the default pursuant to the Contract Documents, or
shall promptly, at City’s option:
(1) Take over and complete the Project in accordance with all terms and
conditions in the Contract Documents;
(2) Obtain a bid or bids for completing the Project in accordance with all terms
and conditions in the Contract Documents and upon determination by
Surety of the lowest responsive and responsible bidder, arrange for a
Contract between such bidder, the Surety and City, and make available as
work progresses sufficient funds to pay the cost of completion of the Project,
less the balance of the contract price, including other costs and damages
for which Surety may be liable. The term “balance of the contract price” as
used in this paragraph shall mean the total amount payable to Contractor
by City under the Contract and any modification thereto, less any amount
previously paid by City to the Contractor and any other set offs pursuan t to
the Contract Documents; or
(3) Permit City to complete the Project in any manner consistent with local,
California and federal law and make available as work progresses sufficient
funds to pay the cost of completion of the Project, less the balance of the
contract price, including other costs and damages for which Surety may be
liable. The term “balance of the contract price” as used in this paragraph
shall mean the total amount payable to Contractor by City under the
Contract and any modification thereto, less any amount previously paid by
City to the Contractor and any other set offs pursuant to the Contract
Documents.
Surety expressly agrees that City may reject any contractor or subcontractor which may
be proposed by Surety in fulfillment of its o bligations in the event of default by the
Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid
from Contractor for completion of the Project if City, when declaring the Contractor in
default, notifies Surety of City’s objection to Contractor’s further participation in the
completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension
of time, alteration or addition to the terms of the Contract Documents or to the Project to
be performed thereunder shall in any way 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 Documents or to the Project, including but not limited to the
provisions of sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day
of ______________, 20__).
Page 191 of 427
ATTACHMENT 2
Page 37 of 43
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence
of corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of
premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent
or Representative for service
of process in California, if
different from above)
(Telephone number of Surety
and Agent or Representative
for service of process in
California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the
Surety to do so must be attached hereto.
Page 192 of 427
ATTACHMENT 2
Page 38 of 43
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public,
personally
appeared , who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons
relying on the document and could prevent fraudulent removal and reattachment of this form
to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
Page 193 of 427
ATTACHMENT 2
Page 39 of 43
PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Arroyo Grande (hereinafter designated as the “City”) has awarded
to KRGS Roofing, Inc. hereinafter designated as the “Principal,” a contract (“Contract”) to
construct the Rebid Roof Repairs on City Structures (hereinafter referred to as the
“Project”).
WHEREAS, the work to be performed by the Principal is more particularly set forth in the
Contract, the terms and conditions of which are expressly incorporated by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract;
providing that if said Principal or any of its Subcontractors shall fail to pay for any
materials, provisions, provender, equipment, or other supplies used in, upon, for or about
the performance of the work contracted to be done, or for any work or labor done thereon
of any kind, or for amounts due under the Unemployment Insurance Code or for any
amounts required to be deducted, withheld, and paid over to the Employment
Development Department from the wages of employees of said Principal and its
Subcontractors with respect to such work or labor the Surety on this bond will pay for the
same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety,
are held and firmly bound unto City in the penal sum of ______________ Dollars
($___________) lawful money of the United States of America, for the payment of which
sum well and truly to be made, we bind ourselves, our heirs, executors, administrators,
successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its
subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay
any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials,
provisions or other supplies, used in, upon, for or about the performance of the work
contracted to be done, or for any work or labor thereon of any kind, or amounts due under
the Unemployment Insurance Code with respect to work or labor performed under the
contract, or for any amounts required to be deducted, withheld, and paid over to the
Employment Development Department or Franchise Tax Board from the wages of
employees of the contractor and his subcontractors pursuant t o Section 18663 of the
Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties
will pay for the same, in an amount not exceeding the sum herein above specified, and
also, in case suit is brought upon this bond, all litigation expenses incurred by City in such
suit, including reasonable attorneys’ fees, court costs, expert witness fees and
investigation expenses.
This bond shall inure to the benefit of any of the persons named in Section 9100 of the
Civil Code so as to give a right of action to such persons or their assigns in any suit
brought upon this bond.
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ATTACHMENT 2
Page 40 of 43
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or
released from the obligation of this bond by any change, extension of time for
performance, addition, alteration or modification in, to, or of any contract, plans,
specifications, or agreement pertaining or relating to any scheme or work of improvement
herein above described, or pertaining or relating to the furnishing of labor, materi als, or
equipment therefore, 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 or work of
improvement herein above described, nor by any rescission or attempted rescissio n 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 by any fraud pr acticed by
any person other than the claimant seeking to recover on the bond and that this bond be
construed most strongly against the Surety and in favor of all persons for whose benefit
such bond is given, and under no circumstances shall Surety be released from liability to
those for whose benefit such bond has been given, by reason of any breach of contract
between the owner or City and original contractor or on the part of any obligee named in
such bond, but the sole conditions of recovery shall be that claimant is a person described
in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and
that Surety does hereby waive notice of any such change, extension of time, addition,
alteration or modification herein mentioned and the provisions of sections 2819 and 2845
of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day
of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence
of corporate authority attached. A Power-of-Attorney authorizing the person signing on
behalf of the Surety to do so m uch be attached hereto.NOTE: A copy of the Power-of-
Attorney authorizing the person signing on behalf of the Surety to do so must be attached
hereto.
Page 195 of 427
ATTACHMENT 2
Page 41 of 43
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public,
personally
appeared , who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons
relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
Page 196 of 427
ATTACHMENT 2
Page 42 of 43
EXHIBIT “G”
CARB FLEET COMPLIANCE CERTIFICATION
Page 197 of 427
ATTACHMENT 2
Page 43 of 43
Page 198 of 427
ATTACHMENT 3
BB&K (2023)
-1-
PROFESSIONAL SERVICES AGREEMENT
CITY OF ARROYO GRANDE
SHORT FORM CONSTRUCTION CONTRACT
CITY HALL BALCONY AND EXTERIOR REHABILITATION PROJECT
1. PARTIES AND DATE.
This Contract is made and entered into this 9th day of June, 2026 by and between the City of
Arroyo Grande (“City”) and BC Construction & Electric, a sole proprietorship, with its principal
place of business at 2709 Alder Avenue, Morro Bay, CA 93442, (“Contractor”) to engage
Contractor to construct the City Hall Balcony and Exterior Rehabilitation Project (“Project”) as set
forth in this Contract. City and Contractor are sometimes individually referred to as “Party” and
collectively as “Parties” in this Contract.
2. RECITALS.
2.1 Contractor. Contractor desires to perform and assume responsibility for the
provision of certain construction services required by City on the terms and conditions set forth in
this Contract. Contractor represents that it is duly licensed and experienced in providing Building
Repair related construction services to public clients, that it and its employees or subcontractors
have all necessary licenses and permits to perform the services in the State of California, and
that it is familiar with the plans of City. The following license classifications are required for this
Project: Class B
2.2 Project Documents & Certifications. Contractor has obtained, and delivers
concurrently herewith, Performance Bond, Payment Bond Insurance documents, CARB
compliance as required by the Contract.
3. TERMS.
3.1 Incorporation of Contract Documents.
3.1.1 Contract Documents. This Contract includes and hereby incorporates
in full by reference the following documents, including all exhibits, drawings, specifications and
documents therein, and attachments and addenda thereto:
Schedule (Exhibit “A”)
Scope of Work: Construction Plans and Technical Specifications (Exhibit “B”)
Special Conditions (Exhibit “C”)
Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”)
Public Works Contractor Registration Certification (Exhibit “E”)
Payment and Performance Bonds (Exhibit “F”)
CARB Fleet Compliance Certification (Exhibit “G”)
Notice Inviting Bids, if any
Instructions to Bidders, if any
Addenda, if any
Contractor’s Bid, if any
3.1.2 Order of Precedence. To the extent there is a conflict between any
portions of this Contract, the order of precedence shall be as follows: Permits, Change Orders
Page 199 of 427
ATTACHMENT 3
BB&K (2023)
-2-
PROFESSIONAL SERVICES AGREEMENT
(most recent first), Addenda (most recent first), Funding Requirements, Technical Specifications,
Construction Plans, Special Provisions, Contract, The Greenbook, Instructions to Bidders, Notice
Inviting Bids, Contractor’s Bid.
3.2 Contractor’s Scope of Work. Contractor promises and agrees, at its own cost
and expense, to furnish to City all labor, materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately complete the Project, including all structures
and facilities necessary for the Project or described in the Contract (hereinafter sometimes
referred to as the “Work”), for a Total Contract Price as specified pursuant to this Contract. All
Work shall be subject to, and performed in accordance with the above-referenced documents, as
well as the exhibits attached hereto and incorporated herein by reference.
3.3 Compensation and Payment.
3.3.1 Amount of Compensation. As consideration for performance of the
Work required herein, City agrees to pay Contractor the total contract price of One Hundred
Eighty-Eight Thousand Seven Hundred and Forty-Nine Dollars ($188,749) (“Total Contract
Price”) provided that such amount shall be subject to adjustment pursuant to the applicable terms
of this Contract or written Change Orders (as defined herein).
3.3.2 Payment of Compensation. If the Work is scheduled for completion in
thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon
completion and approval by City of the Work. If the Work is scheduled for completion in more
than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein.
On or before the fifth (5th) day of each month, Contractor shall submit to City an itemized
application for payment in the format supplied by City indicating the amount of Work completed
since commencement of the Work or since the last progress payment. These applications shall
be supported by evidence which is required by this Contract and such other documentation as
City may require. Contractor shall certify that the Work for which payment is requested has been
done and that the materials listed are stored where indicated. Contractor may be required to
furnish a detailed schedule of values upon request of City and in such detail and form as City
shall request, showing the quantities, unit prices, overhead, profit, and all other expenses involved
in order to provide a basis for determining the amount of progress payments.
3.3.3 Prompt Payment. City shall review and pay all progress payment
requests in accordance with the provisions set forth in Section 20104.50 of the California Public
Contract Code. However, no progress payments will be made for Work not completed in
accordance with this Contract. Contractor shall comply with all applicable laws, rules and
regulations relating to the proper payment of its employees, subcontractors, suppliers or others.
3.3.4 Contract Retentions. If this Contract is greater than Five Thousand
dollars ($5,000), from each approved progress estimate, five percent (5%) will be deducted and
retained by City, and the remainder will be paid to Contractor. All Contract retention shall be
released and paid to Contractor and subcontractors pursuant to California Public Contract Code
Section 7107.
3.3.5 Other Retentions. In addition to Contract retentions, City may deduct
from each progress payment an amount necessary to protect City from loss because of: (1)
liquidated damages which have accrued as of the date of the application for payment; (2) any
sums expended by City in performing any of Contractor’s obligations under the Contract which
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ATTACHMENT 3
BB&K (2023)
-3-
PROFESSIONAL SERVICES AGREEMENT
Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied;
(4) stop payment notices as allowed by state law; (5) reasonable doubt that the Work can be
completed for the unpaid balance of the Total Contract Price or wit hin the scheduled completion
date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from
the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient
documentation as required by the Contract or by City during the prosecution of the Work; (9)
erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums
representing expenses, losses, or damages as determined by City, incurred by City for which
Contractor is liable under the Contract; and (11) any other sums which City is entitled to recover
from Contractor under the terms of the Contract or pursuant to state law, including Section 1727
of the California Labor Code. The failure by City to deduct any of these sums from a progress
payment shall not constitute a waiver of City’s right to such sums.
3.3.6 Substitutions for Contract Retentions. Pursuant to California Public
Contract Code section 22300, Contractor may substitute securities for any money withheld by
City to ensure the performance under the Contract. At the request and expense of Contractor,
securities equivalent to the amount withheld shall be deposited with City, with the State or a
federally chartered bank as the escrow agent, who shall return such securities to Contractor upon
satisfactory completion of the Contract. Deposit of securities with an escrow agent shall be
subject to a written agreement between the escrow agent and City, which provides that no portion
of the securities shall be paid to Contractor until City has certified to the escrow agent, in writing,
that the Contract has been satisfactorily completed. Securities eligible for investment under this
section shall be limited to those listed in Section 16430 of the Government Code, bank or savings
& loan certificates of deposit, interest-bearing demand deposit accounts, stand-by letters of credit,
or any other security mutually agreed to by Contractor.
3.3.7 Payment to Subcontractors. Contractor shall pay all subcontractors for
and on account of work performed by such subcontractors in accordance with the terms of their
respective subcontracts and as provided for in Section 7108.5 of the California Business and
Professions Code. Such payments to subcontractors shall be based on the measurements and
estimates made and progress payments provided to Contractor pursuant to this Contract.
3.3.8 Title to Work. As security for partial, progress, or other payments, title
to Work for which such payments are made shall pass to City at the time of payment. To the
extent that title has not previously been vested in City by reason of payments, full title shall pass
to City at delivery of the Work at the destination and time specified in this Contract. Such
transferred title shall in each case be good, free and clear from any and all security interests,
liens, or other encumbrances. Contractor promises and agrees that it will not pledge,
hypothecate, or otherwise encumber the items in any manner that would result in any lien, security
interest, charge, or claim upon or against said items. Such transfer of title shall not imply
acceptance by City, nor relieve Contractor from the responsibility to strictly comply with the
Contract, and shall not relieve Contractor of responsibility for any loss of or damage to items.
3.3.9 Labor and Material Releases. Contractor shall furnish City with labor
and material releases from all subcontractors performing work on, or furnishing materials for, the
Work governed by this Contract prior to final payment by City.
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ATTACHMENT 3
BB&K (2023)
-4-
PROFESSIONAL SERVICES AGREEMENT
3.4 Period of Performance and Liquidated Damages.
3.4.1 Contractor shall perform and complete all Work under this Contract
within 60 WORKING DAYS, beginning the effective date of the Notice to Proceed (“Contract
Time”). Contractor shall perform its Work in strict accordance with any completion schedule,
construction schedule, or project milestones developed by City. Such schedules or milestones
may be included as part of Exhibits “A” or “B” attached hereto, or may be provided separately in
writing to Contractor. Contractor agrees that if such Work is not completed within the
aforementioned Contract Time, it is understood, acknowledged and agreed that City will suffer
damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to City as fixed
and liquidated damages the sum of Five Hundred Dollars ($500) per day for each and every
calendar day of delay beyond the Contract Time.
3.4.2 Contractor’s entitlement to an extension of Contract Time is limited to
a City-caused extension of the critical path or a Force Majeure Event (as defined herein) that
impacts the critical path and established by a proper time impact analysis. Contractor shall not be
entitled to an adjustment in the Contract Time for delays within the control of Contractor.
Contractor will not be entitled to receive an adjustment to the Total Contract Price or any other
compensation due to a delay that results from a Force Majeure Event. City’s liability to Contractor
for delays to the critical path for which City is responsible shall be limited to only an extension of
Contract Time unless such delays were unreasonable under the circumstances.
3.4.3 A Force Majeure Event shall mean an event that materially affects a
Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters
occurring at the Project site; (2) terrorism or other acts of a public enemy; (3) orders of
governmental authorities (including, without limitation, unreasonable and unforeseeable delay in
the issuance of permits or approvals by governmental authorities that are required for the work);
(4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor
action occurring at the project site and the effects thereof on the work, only to th e extent such
strikes and other organized labor action are beyond the control of Contractor and its
subcontractors, of every tier, and to the extent the effects thereof cannot be avoided by use of
replacement workers. For purposes of this section, “orders of governmental authorities,” includes
ordinances, emergency proclamations and orders, rules to protect the public health, welfare and
safety, and other actions of City in its capacity as a public agency.
3.5 Change Orders.
3.5.1 Change Orders. Any change in the scope of the Work, method of
performance, nature of materials or price thereof, or any other matter materially affecting the
performance or nature of the Work shall not be paid for or accepted unless such change, addition
or deletion is approved in advance and in writing by a written change order, either signed by the
Parties or issued unilaterally by City (“Change Order”). Failure to timely request a Change Order
shall constitute a waiver of any right to adjust the Contract Time or the Total Contract Pri ce. All
requests for Change Orders shall be accompanied by detailed supporting documentation,
including but not limited to payroll records, invoices, schedules, and any other documentation
requested by City for the purpose of determining the additional costs or the impact of any delay.
If the change involves Work bid at a unit price, then the Total Contract Price shall be increased at
the unit price. If there is no unit price, then the Total Contract Price shall be adjusted to account
for costs actually incurred plus an allowed mark-up of up to fifteen percent (15%), which shall
constitute the entire amount of profit, mark-ups, field or home office overhead costs, including
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personnel, equipment or office space, any materials, or any costs of equipment idle time for such
work. Regardless of ownership, equipment rates shall not exceed the listed prevailing rates at
local equipment rental agencies, or distributors, at the time the work is performed. Nothing herein
shall prevent the Parties from agreeing to a lump sum cost.
3.5.2 Changes Ordered By City. City may at any time issue a written directive
ordering additions, deletions, or changes to the Work. Contractor shall proceed with the work in
accordance with the directive. To the extent the directive results in extr a costs or requires
additional Contract Time, Contractor shall request a Change Order within seven (7) days of
receiving the written directive. If any costs are not capable of being determined within seven (7)
days, then Contractor shall provide the costs within seven (7) days of when the costs are capable
of being determined.
3.5.3 Changes Requested By Contractor. With respect to any matter that
may involve or require an adjustment to the Contract Time or the Total Contract Price, Contractor
shall provide written notice of the underlying facts and circumstances that gave rise to the potential
change and any costs within seven (7) days or prior to the alteration of conditions, whichever is
earlier. Failure to give notice shall constitute a waiver of Contractor’s right to a change order. If
any costs are not capable of being determined within seven (7) days, then Contractor shall provide
the costs within seven (7) days of when the costs are capable of being determined.
3.6 Substitutions/”Or Equal”. Pursuant to Public Contract Code Section 3400(b),
City may make a finding that designates certain products, things, or services by specific brand or
trade name. Such designation, if any, is in the Special Conditions. Unless specifically designated
in this Contract, whenever any material, process, or article is indicated or specified by grade,
patent, or proprietary name or by name of manufacturer, such specifications shall be deemed to
be used for the purpose of facilitating the description of the material, process or article desired
and shall be deemed to be followed by the words “or equal.” Contractor may, unless otherwise
stated, offer for substitution any material, process or article which shall be substantially equal or
better in every respect to that so indicated or specified in this Contract. However, City may have
adopted certain uniform standards for certain materials, processes and articles. Contractor shall
submit requests, together with substantiating data, for substitution of any “or equal” material,
process or article no later than thirty-five (35) days after award of the Contract. To facilitate the
construction schedule and sequencing, some requests may need to be submitted before thirty-
five (35) days after award of Contract. Provisions regarding submission of “or equal” requests
shall not in any way authorize an extension of time for performance of this Contract. If a proposed
“or equal” substitution request is rejected, Contractor shall be responsible for providing the
specified material, process or article. The burden of proof as to the equality of any material,
process or article shall rest with Contractor. City has the complete and sole discretion to
determine if a material, process or article is an “or equal” material, process or article that may be
substituted. Data required to substantiate requests for substitutions of an “or equal” material,
process or article data shall include a signed affidavit from Contractor stating that, and describing
how, the substituted “or equal” material, process or article is equivalent to that specified in every
way except as listed on the affidavit. Substantiating data shall include any and all illustrations,
specifications, and other relevant data including catalog information which describes the
requested substituted “or equal” material, process or article, and substantiates that it is an “or
equal” to the material, process or article. The substantiating data must also include information
regarding the durability and lifecycle cost of the requested substituted “or eq ual” material, process
or article. Failure to submit all the required substantiating data, including the signed affidavit, to
City in a timely fashion will result in the rejection of the proposed substitution. Contractor shall
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bear all of City’s costs associated with the review of substitution requests. Contractor shall be
responsible for all costs related to a substituted “or equal” material, process or article.
3.7 Standard of Performance; Performance of Employees. Contractor shall
perform all Work under this Contract in a skillful and workmanlike manner, and consistent with
the standards generally recognized as being employed by contractors in the State of California.
Contractor warrants that all employees and subcontractors shall have sufficient skill and
experience to perform the Work assigned to them. Contractor represents that it, its employees
and subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Work, including a business license, and that such licenses
and approvals shall be maintained throughout the term of this Contract. As provided for in the
indemnification provisions of this Contract, Contractor shall perform, at its own cost and expense
and without reimbursement from City, any work necessary to correct errors or omissions which
are caused by Contractor’s failure to comply with the standard of care provided for herein. Any
employee who is determined by City to be uncooperative, incompetent, a threat to the safety of
persons or the Work, or any employee who fails or refuses to perform the Work in a manner
acceptable to City, shall be promptly removed from the Project by Contractor and shall not be
re-employed on the Work.
3.8 Control and Payment of Subordinates; Contractual Relationship. City retains
Contractor on an independent contractor basis and Contractor is not an employee of City. Any
additional personnel performing the work governed by this Contract on behalf of Contractor shall
at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance under this
Contract and as required by law. Contractor shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, and workers’ compensation insurance.
3.9 Labor.
3.9.1 Prevailing Wages. Contractor is aware of the requirements of
California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of
Regulations, Title 8, Section 16000 et seq., (“Prevailing Wage Laws”), which require the payment
of prevailing wage rates and the performance of other requirements on “public works” and
“maintenance” projects. Since the Work is being performed as part of an applicable “public works”
or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation
is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall
provide Contractor with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem
wages for each craft, classification or type of worker needed to execute the Services available to
interested parties upon request, and shall post copies at Contractor’s principal place of business
and at the project site. Contractor shall defend, indemnify and hold City, its 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. Contractor and any subcontractor shall
forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than
the prevailing wage rates.
3.9.2 Apprenticeable Crafts. When Contractor employs workmen in an
apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the
California Labor Code with respect to the employment of properly registered apprentices upon
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public works. The primary responsibility for compliance with said section for all apprenticeable
occupations shall be with Contractor. The Contractor or any subcontractor that is determined by
the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty
an amount not exceeding $100 for each full calendar day of noncompliance, or such greater
amount as provided by law.
3.9.3 Hours of Work. Contractor is advised that eight (8) hours labor
constitutes a legal day’s work. Pursuant to Section 1813 of the California Labor Code, Contractor
shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work
more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week,
except when payment for overtime is made at not less than one and one-half (1-1/2) times the
basic rate for that worker.
3.9.4 Payroll Records. Contractor and each subcontractor shall keep an
accurate payroll record, 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 him or her in connection
with the public work. The payroll records shall be certified and shall be available for inspection at
all reasonable hours at the principal office of Contractor in the manner provided in Labor Code
section 1776. In the event of noncompliance with the requirements of this section, Contractor
shall have 10 days in which to comply subsequent to receipt of written notice specifying in what
respects such Contractor must comply with this section. Should noncompliance still be evident
after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for
each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The
amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is
found to have violated the provisions of law regarding wages on Public Works with the intent to
defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as
determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship
Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from
progress payments then due. The responsibility for compliance with this section is on Contractor.
In accordance with Labor Code section 1771.4, the Contractor and each subcontractor shall
furnish the certified payroll records directly to the Department of Industrial Relations (“DIR”) on a
weekly basis and in the format prescribed by the DIR, which may include electronic submission.
The requirement to submit certified payroll records directly to the Labor Commissioner under
Labor Code section 1771.4 shall not apply to work performed on a public works project that is
exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
3.9.5 Contractor and Subcontractor Registration. Pursuant to Labor Code
sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a
bid proposal, or enter into a contract to perform public work must be registered with the DIR. No
bid will be accepted nor any contract entered into without proof of the contractor’s and
subcontractors’ current registration with the DIR to perform public work. Contractor is directed to
review, fill out and execute the Public Works Contractor Registration Certification attached hereto
as Exhibit “E” prior to contract execution. Notwithstanding the foregoing, the contractor
registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply
to work performed on a public works project that is exempt pursuant to the small project exemption
specified in Labor Code Sections 1725.5 and 1771.1.
3.9.6 Labor Compliance; Stop Orders. This Project is subject to compliance
monitoring and enforcement by the DIR. It shall be the Contractor’s sole responsibility to evaluate
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and pay the cost of complying with all labor compliance requirements under t his Contract and
applicable law. Any stop orders issued by the DIR against Contractor or any subcontractor that
affect Contractor’s performance of Work, including any delay, shall be Contractor’s sole
responsibility. Any delay arising out of or resulting from such stop orders shall be considered
Contractor caused delay subject to any applicable liquidated damages and shall not be
compensable by City. Contractor shall defend, indemnify and hold City, its officials, officers,
employees and agents free and harmless from any claim or liability arising out of stop orders
issued by the DIR against Contractor or any subcontractor.
3.10 Performance of Work; Jobsite Obligations.
3.10.1 Water Quality Management and Compliance.
3.10.1.1 Water Quality Management and Compliance. Storm,
surface, ground, nuisance, or other waters may be encountered at various times during
construction of the Project. Contractor hereby acknowledges that it has investigated the risk
arising from such water and assumes any and all risks and liabilities arising therefrom. Contractor
shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance
with all local, state and federal laws, rules and regulations that may impact, or be implicated by
the performance of the Work including, without limitation, all applicable provisions of the Federal
Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality
Control Act (Cal Water Code §§ 13000-14950); local ordinances regulating discharges of storm
water; and any and all regulations, policies, or permits issued pursuant to any such authority
regulating the discharge of pollutants, as that term is used in the Porter -Cologne Water Quality
Control Act, to any ground or surface water in the State.
3.10.1.2 Compliance with the Statewide Construction General
Permit. Contractor shall comply with all conditions of the most recent iteration of the National
Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated
with Construction Activity, issued by the California State Water Resources Control Board
(“Permit”). It shall be Contractor’s sole responsibility to file a Notice of Intent and procure coverage
under the Permit for all construction activity which results in the disturbance of more than one
acre of total land area or which is part of a larger common area of development or sale. Prior to
initiating work, Contractor shall be solely responsible for preparing and implementing a Storm
Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be
responsible for procuring, implementing and complying with the provisions of the Permit and the
SWPPP, including the standard provisions, and monitoring and reporting requirements as
required by the Permit. The Permit requires the SWPPP to be a “living document” that changes
as necessary to meet the conditions and requirements of the job site as it progresses through
difference phases of construction and is subject to different weather conditions. It shall be
Contractor’s sole responsibility to update the SWPPP as necessary to address conditions at the
Project site.
3.10.1.3 Liability for Non-Compliance. Failure to comply with laws,
regulations, standards, ordinances, and permits listed in this Section 3.10.1 is a violation of federal
and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby
agrees to defend, indemnify and hold harmless City and its directors, officials, officers,
employees, volunteers and agents for any alleged violations. In addition, City may seek damages
from Contractor for any delay in completing the Work in accordance with the Contract, if such
delay is caused by or related to Contractor’s failure to comply with the Permit.
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3.10.1.4 Reservation of Right to Defend. City reserves the right to
defend any enforcement action brought against City for Contractor’s failure to comply with the
Permit or any other relevant water quality law, regulation, or policy. Pursuant to the
indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to
reimburse City for the costs (including City’s attorney’s fees) associated with, any settlement
reached between City and the relevant enforcement entity.
3.10.1.5 Training. In addition to the standard of performance
requirements set forth in this Contract, Contractor warrants that all employees and subcontractors
shall have sufficient skill and experience to perform the work assigned to them without impacting
water quality in violation of the laws, regulations and policies described in this Section 3.10.1.
Contractor further warrants that it, its employees and subcontractors will receive adequate
training, as determined by City, regarding the requirements of the laws, regulations and policies
described in paragraph 3.11.1 as they may relate to the Work provided under this Contract. Upon
request, City will provide the Contractor with a list of training programs that meet the requirements
of this paragraph.
3.10.2 Environmental Quality Protection. City operates under a number of
environmental permits issued by various agencies. Contractor shall comply with all requirements
of applicable law for environmental rules and regulations. Any infractions of applicable law by
Contractor during the term of the Contract, which result in penalties, will be the responsibility of
Contractor. If due to an action, inaction, or negligence by Contractor, City becomes subject to
non-compliance penalties, the cost of such penalties shall be borne by Contractor. Contractor
shall exercise care to preserve the natural landscape and vegetation, and shall conduct
operations so as to prevent unnecessary destruction, scarring, or defacing of the natural
surroundings in the vicinity of the Work. Movement of crews and equipment within the rights-of-
way and over routes provided for access to the Work shall be performed in a manner to prevent
damage to property. When no longer required, construction roads shall be restored to original
contours. Upon completion of the Project and following removal of construction facilities and
required cleanup, land used for construction purposes and not required for the completed
installation shall be scarified and regraded, as required, so that all surfaces are left in a condition
that will facilitate natural revegetation, provide for proper drainage, and prevent erosion.
3.10.3 Safety. Contractor shall execute and maintain its work so as to avoid
injury or damage to any person or property. Contractor shall comply with the requirements of the
specifications relating to safety measures applicable in particular operations or kinds of work. In
carrying out its Work, Contractor shall at all times be in compliance with all applicable local, state
and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety
of employees appropriate to the nature of the Work and the conditions under which the Work is
to be performed. Safety precautions as applicable shall include, but shall not be limited to,
adequate life protection and lifesaving equipment; adequate illumination for underground and
night operations; instructions in accident prevention for all employees, such as machinery guards,
safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching
and shoring, fall protection and other safety devices, equipment and wearing apparel as are
necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the
proper inspection and maintenance of all safety measures. Furthermore, Contractor shall
prominently display the names and telephone numbers of at least two medical doctors practicing
in the vicinity of the Project, as well as the telephone number of the local ambulance service,
adjacent to all telephones at the Project site.
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3.10.4 Laws and Regulations. Contractor shall keep itself fully informed of and
in compliance with all local, state and federal laws, rules and regulations in any manner affecting
the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give
all notices required by law. Contractor shall be liable for all violations of such laws and regulations
in connection with the Work. If Contractor observes that the drawings or specifications are at
variance with any law, rule or regulation, it shall promptly notify City in writing. Any necessary
changes shall be made by written Change Order. If Contractor performs any W ork knowing it to
be contrary to such laws, rules and regulations and without giving written notice to City, Contractor
shall be solely responsible for all costs arising therefrom. City is a public entity of the State of
California subject to certain provisions of the Health & Safety Code, Government Code, Public
Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the
law applicable to the public contracts of a public agency are a part of this Contract to the same
extent as though set forth herein and will be complied with. Contractor shall defend, indemnify
and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant
to the indemnification provisions of this Contract, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.10.5 Permits and Licenses. Contractor shall be responsible for securing and
paying for all permits and licenses necessary to perform the Work. Contractor will not be charged
a fee for any City permits. Any ineligible contractor or subcontractor pursuant to Labor Code
Sections 1777.1 and 1777.7 may not perform work on this Project.
3.10.6 Trenching Work. If the Total Contract Price exceeds $25,000 and if the
Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more
in depth, Contractor shall comply with all applicable provisions of the California Labor Code,
including Section 6705. To this end, Contractor shall submit for City’s review and approval a
detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for
worker protection from the hazard of caving ground during the excavation of such trench or
trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a
registered civil or structural engineer.
3.10.7 Hazardous Materials and Differing Conditions. As required by California
Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations
that extend deeper than four (4) feet below the surface, Contractor shall prompt ly, and prior to
disturbance of any conditions, notify City of: (1) any material discovered in excavation that
Contractor believes to be a 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; (2)
subsurface or latent physical conditions at the site differing from those indicated by information
about the site made available by City prior to deadline for submitting bids; and (3) unknown
physical conditions of an unusual nature at the site, different materially from those ordinarily
encountered and generally recognized as inherent in work of the character provided for in the
Contract. Upon notification, City shall promptly investigate the conditions to determine whether a
Change Order is appropriate. In the event of a dispute, Contractor shall not be excused from any
scheduled completion date and shall proceed with all Work to be performed under the Contract,
but shall retain all rights provided by the Contract or by law for making protests and resolving the
dispute.
3.10.8 Underground Utility Facilities. To the extent required by Section 4215
of the California Government Code, City shall compensate Contractor for the costs of: (1) locating
and repairing damage to underground utility facilities not caused by the failure of Contractor to
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exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in
the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall
not be assessed liquidated damages for delay caused by failure of City to provide for removal or
relocation of such utility facilities.
3.10.9 Air Quality.
3.10.9.1 Contractor must fully comply with all applicable laws, rules
and regulations in furnishing or using equipment and/or providing services, including, but not
limited to, emissions limits and permitting requirements imposed by the Califor nia Air Resources
Board (CARB). Although CARB limits and requirements are more broad, Contractor shall
specifically be aware of their application to “portable equipment”, which definition is considered
by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify
City against any fines or penalties imposed by CARB, or any other governmental or regulatory
agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors,
or others for whom Contractor is responsible under its indemnity obligations provided for in this
Contract.
3.10.9.2 To the extent applicable, Contractor, shall comply, and shall
ensure all subcontractors comply, with all requirements of the most current version of CARB
including, without limitation, all applicable terms of Title 13, California Code of Regulations
Division 3, Chapter 9 and all pending amendments (“CARB Regulation”). Contractor must submit
with execution of this Contract a valid Certificate of Reported Compliance (“CRC”) for the
Contractor’s and its subcontractors fleet (including any applicable leased equipment or vehicles).
Throughout Project, and for three (3) years thereafter, Contractor shall make available for
inspection and copying any and all documents or information associated with Contractor’s and
subcontractors’ fleet including, without limitation, the CRCs, fuel/refueling records, maintenance
records, emissions records, and any other information the Contractor is required to produce, keep
or maintain pursuant to the CARB Regulation upon two (2) calendar days’ notice from City.
Contractor shall be solely liable for any and all costs associated with complying with the CARB
Regulation as well as for any and all penalties, fines, damages, or costs associated with any and
all violations, or failures to comply with the CARB Regulation. Contractor shall defend, indemnify
and hold harmless City, its officials, officers, employees and authorized volunteers free and
harmless from any claims, liabilities, costs, penalties
3.10.10 State Recycling Mandates. Contractor shall comply with all applicable
law regarding the diversion of construction and demolition debris and other waste from the
Project, including, not but limited to, the California Building Standards Code a nd any applicable
amendments. All costs incurred for these waste diversion efforts shall be the responsibility of the
Contractor.
3.10.11 Inspection Of Site. Contractor has visited sites where Work is to be
performed and has become acquainted with all conditions affecting the Work. Contractor warrants
that it has made such examinations as it deems necessary to determine the condition of the Work
sites, its accessibility to materials, workmen and equipment, and to determine the Contractor’s
ability to protect existing surface and subsurface improvements. No claim for allowances–time or
money–will be allowed as to such matters.
3.10.12 Field Measurements. Contractor shall make field measurements, verify
field conditions and shall carefully compare such field measurements and conditions and other
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information known to Contractor with the Contract Documents before commencing activities.
Errors, inconsistencies or omissions discovered shall be reported to City immediately and prior to
performing any work or altering the condition.
3.11 Completion of Work. When Contractor determines that it has completed the
Work required herein, Contractor shall so notify City in writing and shall furnish all labor and
material releases required by this Contract. City shall thereupon inspect the Work. If the Work is
not acceptable to City, City shall indicate to Contractor in writing the specific portions or items of
Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed
the incomplete or unsatisfactory Work, Contractor may request a re-inspection by City. Once the
Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be
paid, less any amount which City may be authorized or directed by law to retain. Payment of
retention proceeds due to Contractor shall be made in accordance with Section 7107 of the
California Public Contract Code.
3.12 Claims; Government Code Claim Compliance.
3.12.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the
California Public Contract Code prescribes a process utilizing informal conferences, non-binding
judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims
of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code
prescribes a process for negotiation and mediation to resolve disputes on construction claims.
The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the
California Public Contract Code. This Section shall be construed to be consistent with said
statutes.
3.12.2 Claims. For purposes of this Section, “Claim” means a separate
demand by the Contractor, after a change order duly requested in accordance with the terms of
this Contract has been denied by City, for (A) a time extension, (B) payment of money or damages
arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an
amount the payment of which is disputed by City. A “Claim” does not include any demand for
payment for which the Contractor has failed to provide notice, request a Change Order, or
otherwise failed to follow any procedures contained in the Contract Documents.
3.12.3 Filing Claims. Claims governed by this Section may not be filed unless
and until the Contractor completes all procedures for giving notice of delay or change and for the
requesting of a time extension or Change Order, including but not necessarily limited to the
Change Order procedures contained herein, and Contractor’s request for a change has been
denied in whole or in part. Claims governed by this Section must be filed no later than fourteen
(14) days after a request for change has been denied in whole or in part or after any other event
giving rise to the Claim. The Claim shall be submitted in writing to City and shall include on its
first page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall
include the documents necessary to substantiate the claim. Nothing in this Section is intended to
extend the time limit or supersede notice requirements otherwise provided by contract for the filing
of claims, including all requirements pertaining to compensation or payment for extra Work,
disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall
bar any claims or subsequent lawsuits for compensation or payment thereon.
3.12.4 Supporting Documentation. The Contractor shall submit all claims in
the following format:
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3.12.4.1 Summary of claim merit and price, reference Contract
Document provisions pursuant to which the claim is made
3.12.4.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
3.12.4.3 Chronology of events and correspondence
3.12.4.4 Analysis of claim merit
3.12.4.5 Analysis of claim cost, including calculations and supporting
documents
3.12.4.6 Time impact analysis in CPM format
3.12.5 City’s Response. Upon receipt of a Claim pursuant to this Section, City
shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days of
receipt of the Claim, or as extended by mutual agreement, shall provide the Contractor a written
statement identifying what portion of the Claim is disputed and what portion is undisputed. Any
payment due on an undisputed portion of the Claim will be processed and made within 60 days
after City issues its written statement.
3.12.5.1 If City needs approval from its governing body to provide the
Contractor a written statement identifying the disputed portion and the undisputed portion of the
Claim, and the governing body does not meet within the 45 days or within the mutually agreed to
extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt
requested, City shall have up to three (3) days following the next duly publicly noticed meeting of
the governing body after the 45-day period, or extension, expires to provide the Contractor a
written statement identifying the disputed portion and the undisputed portion.
3.12.5.2 Within 30 days of receipt of a Claim, City may request in
writing additional documentation supporting the Claim or relating to defenses or claims City may
have against the Contractor. If additional information is thereafter required, it shall be requested
and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
City’s written response to the Claim, shall be submitted to the Contractor within 30 Days (if the
Claim is less than $50,000, within 15 Days) after receipt of the additional documentation, or within
a period of time no greater than that taken by the Contractor in producing the additional
information or requested documentation, whichever is greater.
3.12.6 Meet and Confer. If the Contractor disputes City’s written response, or
City fails to respond within the time prescribed, the Contractor may so notify City, in writing, within
15 Days of receipt of City’s response or City’s failure to respond, and demand an informal
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conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand,
City shall schedule a meet and confer conference within 30 Days for settlement of the dispute.
3.12.7 Mediation. W ithin 10 business days following the conclusion of the
meet and confer conference, if the Claim or any portion of the Claim remains in dispute, City shall
provide the Contractor a written statement identifying the portion of the Claim that remains in
dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim
shall be processed and made within 60 Days after City issues its written statement. Any disputed
portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding
mediation, with City and the Contractor sharing the associated costs equally. City and Contractor
shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim
has been identified in writing, unless the Parties agree to select a mediator at a later time.
3.12.7.1 If the Parties cannot agree upon a mediator, each Party
shall select a mediator and those mediators shall select a qualified neutral third party to mediate
with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged
by its respective mediator in connection with the selection of the neutral mediator.
3.12.7.2 For purposes of this section, mediation includes any
nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in
which an independent third party or board assists the Parties in dispute resolution through
negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes
in this section.
3.12.7.3 Unless otherwise agreed to by City and the Contractor in
writing, the mediation conducted pursuant to this section shall excuse any further obligation under
Section 20104.4 to mediate after litigation has been commenced.
3.12.7.4 The mediation shall be held no earlier than the date the
Contractor completes the Work or the date that the Contractor last performs Work, whichever is
earlier. All unresolved Claims shall be considered jointly in a single mediation, unless a new
unrelated Claim arises after mediation is completed.
3.12.8 Procedures After Mediation. If following the mediation, the Claim or
any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1
(commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of
Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of
the period of time within which a claim must be filed shall be tolled from the time the Contractor
submits his or her written Claim pursuant to subdivision (a) until the time the Claim is denied,
including any period of time utilized by the meet and confer conference or mediation.
3.12.9 Civil Actions. The following procedures are established for all civil
actions filed to resolve Claims of $375,000 or less:
3.12.9.1 Within 60 Days, but no earlier than 30 Days, following the
filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless
waived by mutual stipulation of both Parties or unless mediation was held prior to commencement
of the action in accordance with Public Contract Code section 9204 and the terms of these
procedures. The mediation process shall provide for the selection within 15 Days by both Parties
of a disinterested third person as mediator, shall be commenced within 30 Days of the submittal,
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and shall be concluded within 15 Days from the commencement of the mediation unless a time
requirement is extended upon a good cause showing to the court.
3.12.9.2 If the matter remains in dispute, the case shall be submitted
to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part
3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil
Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4
of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision
consistent with the rules pertaining to judicial arbitration.
3.12.9.3 In addition to Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible,
be experienced in construction law, and (B) any party appealing an arbitration award who does
not obtain a more favorable judgment shall, in addition to payment of costs and fees under that
chapter, also pay the attorney’s fees on appeal of the other party.
3.12.10 Government Code Claim Procedures.
3.12.10.1 This section does not apply to tort claims and nothing in this
section is intended nor shall be construed to change the time periods for filing tort claims or actions
specified by Chapter 1 (commending with Section 900) and Chapter 2 (commencing with Section
910) of Part 3 of Division 3.5 of Title 1 of the Government Code.
3.12.10.2 In addition to any and all Contract requirements pertaining
to notices of and requests for adjustments to the Contract Time, Contract Price, or compensation
or payment for extra work, disputed work, claims and/or changed conditions, Contractor must
comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing
any lawsuit against City.
3.12.10.3 Such Government Code claims and any subsequent lawsuit
based upon the Government Code claims shall be limited to those matters that remain unresolved
after all procedures pertaining to adjustment of the Contract Time, Contract Price, or
compensation or payment for extra work, disputed work, claims, and/or changed conditions have
been followed by Contractor. If no such Government Code claim is submitted, or if any
prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor
may not file any action against City.
3.12.10.4 A Government Code claim must be filed no earlier than the
date the Work is completed or the date the Contractor last performs work on the Project,
whichever occurs first. A Government Code claim shall be inclusive of all unresolved Claims
known to the Contractor excepting only new unrelated Claims that arise after the Government
Code claim is submitted.
3.12.11 Non-Waiver. City’s failure to respond to a Claim from the Contractor
within the time periods described in this section or to otherwise meet the time requirements of this
section shall result in the Claim being deemed rejected in its entirety and shall not constitute a
waiver of any rights under this section.
3.13 Loss and Damage. Except as may otherwise be limited by law, Contractor shall
be responsible for all loss and damage which may arise out of the nature of the Work agree d to
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herein, or from the action of the elements, or from any unforeseen difficulties which may arise or
be encountered in the prosecution of the Work until the same is fully completed and accepted by
City. In the event of damage proximately caused by an Act of God, as defined by Section 7105
of the Public Contract Code, City may terminate this Contract pursuant to the termination
provisions in this Contract; provided, however, that City needs to provide Contractor with only one
(1) day advanced written notice.
3.14 Indemnification.
3.14.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor
shall defend, indemnify and hold City, its officials, employees, agents and volunteers free and
harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs,
expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind,
in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to
property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out
of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor,
its officials, officers, employees, subcontractors, consultants or agents in connection with the
performance of the Contractor’s services, the Project or this Contract, including without limitation
the payment of all expert witness fees, attorneys’ fees and other related costs and expenses.
Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s
indemnity obligation shall not apply to the extent such loss or damage is caused by the sole or
active negligence or willful misconduct of City.
3.14.2 Additional Indemnity Obligations. Contractor shall defend, with counsel
of City’s choosing and at Contractor’s own cost, expense and risk, any and all Claims covered by
this section that may be brought or instituted against City or its officials, employees, agents and
authorized volunteers. In addition, Contractor shall pay and satisfy any judgment, award or
decree that may be rendered against City or its officials, employees, agents and authorized
volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also
reimburse City for the cost of any settlement paid by City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall
survive expiration or termination of this Contract, and shall not be restricted to insurance
proceeds, if any, received by City, its officials, employees, agents and authorized volunteers.
3.15 Insurance.
3.15.1 Time for Compliance. Contractor shall not commence Work under this
Contract until it has provided evidence satisfactory to City that it has secured all insurance
required under this section. In addition, Contractor shall not allow any subcontractor to
commence work on any subcontract until it has provided evidence satisfactory to City that the
subcontractor has secured all insurance required under this section. Failure to provide and
maintain all required insurance shall be grounds for City to terminate this Contract for cause.
3.15.2 Minimum Requirements. Contractor shall, at its expense, procure and
maintain for the duration of the Contract insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the performance of the Work
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hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor
shall also require all of its subcontractors to procure and maintain the same insurance for the
duration of the Contract. Such insurance shall meet at least the following minimum levels of
coverage:
3.15.2.1 Minimum Scope of Insurance. Coverage shall be at least
as broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 00 01) OR Insurance Services Office
Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for
operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business
Auto Coverage form number CA 00 01, code 1 (any auto); (3) Workers’ Compensation and
Employer’s Liability: Workers’ Compensation insurance as required by the State of California and
Employer’s Liability Insurance; and (4) Builders’/All Risk: Builders’/All Risk insurance covering for
all risks of loss, including explosion, collapse, underground excavation and removal of lateral
support (and including earthquakes and floods if requested by City). Policies shall not contain
exclusions contrary to this Contract.
3.15.2.2 Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $2,000,000 per occurrence and $4,000,000 general
aggregate for bodily injury, personal injury and property damage; (2) Automobile Liability:
$2,000,000 per accident for bodily injury and property damage; (3) Workers’ Compensation and
Employer’s Liability: Workers’ compensation limits as required by the Labor Code of the State of
California. Employer’s Liability limits of $1,000,000 each accident, policy limit bodily injury or
disease, and each employee bodily injury or disease; and (4) Builders’/All Risk: Completed value
of the project. Defense costs shall be available in addition to the limits. Notwithstanding the
minimum limits specified herein, any available coverage shall be provided to the parties required
to be named as additional insureds pursuant to this Contract.
3.15.2.3 Notices; Cancellation or Reduction of Coverage. At least
fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance
coverage has been renewed or extended shall be filed with City. If such coverage is cancelled or
materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such
cancellation or reduction of coverage, file with City evidence of insurance showing that the
required insurance has been reinstated or has been provided through another insurance company
or companies. In the event any policy of insurance required under this Contract does not comply
with these specifications or is canceled and not replaced, City has the right but not the duty to
obtain the insurance it deems necessary and any premium paid by City will be promptly
reimbursed by Contractor or City may withhold amounts sufficient to pay premium from Contractor
payments. In the alternative, City may suspend or terminate this Contract.
3.15.3 Insurance Endorsements. The insurance policies shall contain the
following provisions, or Contractor shall provide endorsements (amendments) on forms supplied
or approved by City to add the following provisions to the insurance policies:
3.15.3.1 General Liability. (1) Such policy shall give City, its officials,
employees, agents and volunteers additional insured status using ISO endorsements CG20 10
10 01 plus CG20 37 10 01, or endorsements providing the exact same coverage, with respect to
the Work or operations performed by or on behalf of Contractor, including materials, parts or
equipment furnished in connection with such work; (2) all policies shall waive or shall permit
Contractor to waive all rights of subrogation which may be obtained by the Contractor or any
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insurer by virtue of payment of any loss or any coverage provided to any person named as an
additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of
subrogation; and (3) the insurance coverage shall be primary insurance as respects City, its
officials, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of
coverage excess of Contractor’s scheduled underlying coverage. Any insurance or self-insurance
maintained by City, its officials, employees, agents and volunteers shall be excess of Contractor’s
insurance and shall not be called upon to contribute with it.
3.15.3.2 Automobile Liability. (1) Such policy shall give City, its
officials, employees, agents and volunteers additional insured status with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired
or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall waive or
shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor
or any insurer by virtue of payment of any loss or any coverage provided to any person named
as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights
of subrogation; and (3) the insurance coverage shall be primary insurance as respects City, its
officials, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of
coverage excess of Contractor’s scheduled underlying coverage. Any insurance or self-insurance
maintained by City, its officials, employees, agents and volunteers shall be excess of Contractor’s
insurance and shall not be called upon to contribute with it in any way.
3.15.3.3 Workers’ Compensation and Employer’s Liability Coverage.
The insurer shall agree to waive all rights of subrogation against City, its officials, employees,
agents and volunteers for losses paid under the terms of the insurance policy which arise from
work performed by Contractor.
3.15.3.4 All Coverages. Each insurance policy required by this
Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to City; and (2) any failure to comply with reporting or other provisions
of the policies, including breaches of warranties, shall not affect coverage provided to City, its
officials, employees, agents and volunteers.
3.15.4 Builders’/All Risk Policy Requirements. The builders’/all risk insurance
shall provide that City be named as loss payee. In addition, the insurer shall waive all rights of
subrogation against City.
3.15.5 Separation of Insureds; No Special Limitations. All insurance required
by this Section shall contain standard separation of insureds provisions. In addition, such
insurance shall not contain any special limitations on the scope of protection afforded to City, its
officials, employees, agents and volunteers.
3.15.6 Professional Liability Insurance. All architects, engineers, consultants
or design professionals retained by Contractor shall also procure and maintain, for a period of five
(5) years following completion of the Contract, errors and omissions liability insurance with a limit
of not less than $1,000,000 per occurrence. This insurance shall name City, its directors, officials,
officers, employees, agents and volunteers as additional and insureds with respect to Work
performed, and shall otherwise comply with all requirements of this Section. Defense costs shall
be paid in addition to the limits.
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3.15.7 Deductibles and Self-Insurance Retentions. Any deductibles or self-
insured retentions must be declared to and approved by City. Contractor shall guarantee that, at
the option of City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects City, its officials, employees, agents and authorized volunteers; or (2) the
Contractor shall procure a bond or other financial guarantee acceptable to City guaranteeing
payment of losses and related investigation costs, claims and administrative and defense
expenses.
3.15.8 Acceptability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best’s rating no less than A:VII, licensed to do business in California, and satisfactory
to City. Exception may be made for the State Compensation Insurance Fund when not specifically
rated.
3.15.9 Verification of Coverage. Contractor shall furnish City with original
certificates of insurance and endorsements effecting coverage required by this Contract on forms
satisfactory to City. The certificates and endorsements for each insurance policy shall be signed
by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms
supplied or approved by City. All certificates and endorsements must be received and approved
by City before work commences. City reserves the right to require complete, certified copies of
all required insurance policies, at any time.
3.15.10 Subcontractors. All subcontractors shall meet the requirements of this
Section before commencing Work. Contractor shall furnish separate certificates and
endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall
name City, its officials, employees, agents and authorized volunteers as additional insureds using
form ISO 20 38 04 13 or endorsements providing the exact same coverage. All coverages for
subcontractors shall be subject to all of the requirements stated herein except as otherwise
agreed to by City in writing.
3.15.11 Reporting of Claims. Contractor shall report to City, in addition to
Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the
Work under this Contract.
3.16 Bond Requirements.
3.16.1 Payment Bond. If required by law or otherwise specifically requested
by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall
execute and provide to City concurrently with this Contract a Payment Bond in an amount required
by City and in a form provided or approved by City. If such bond is required, no payment will be
made to Contractor until the bond has been received and approved by City.
3.16.2 Performance Bond. If specifically requested by City in Exhibit “C”
attached hereto and incorporated herein by reference, Contractor shall execute and provide to
City concurrently with this Contract a Performance Bond in an amount required by City and in a
form provided or approved by City. If such bond is required, no payment will be made to
Contractor until the bond has been received and approved by City.
3.16.3 Bond Provisions. Should, in City’s sole opinion, any bond become
insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the
effected bond within (ten) 10 days of receiving notice from City. In the event the surety or
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Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to City, and Contractor shall post acceptable replacement bonds at least ten
(10) days prior to expiration of the original bonds. No further payments shall be deemed due or
will be made under this Contract until any replacement bonds required by this Section are
accepted by City. To the extent, if any, that the Total Contract Price is increased in accordance
with the Contract, Contractor shall, upon request of City, cause the amount of the bond to be
increased accordingly and shall promptly deliver satisfactory evidence of such increase to City.
If Contractor fails to furnish any required bond, City may terminate the Contract for cause.
3.16.4 Surety Qualifications. Only bonds executed by an admitted surety
insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a
California-admitted surety insurer issuing bonds does not meet these requirements, the insurer
will be considered qualified if it is in conformance with Section 995.660 of the California Code of
Civil Procedure, and proof of such is provided to City.
3.17 Warranty. Contractor warrants all Work under the Contract (which for purposes
of this Section shall be deemed to include unauthorized work which has not been removed and
any non-conforming materials incorporated into the Work) to be of good quality and free from any
defective or faulty material and workmanship. Contractor agrees that for a period of one year (or
the period of time specified elsewhere in the Contract or in any guarantee or warranty provided
by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever
is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified
in writing by City of any defect in the Work or non-conformance of the Work to the Contract,
commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty
at its sole cost and expense. Contractor shall act sooner as requested by City in response to an
emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any
portions of the Work (or work of other contractors) damaged by its defective Work or which
becomes damaged in the course of repairing or replacing defective Work. For any Work so
corrected, Contractor’s obligation hereunder to correct defective Work shall be reinstated for an
additional one year period, commencing with the date of acceptance of such corrected Work.
Contractor shall perform such tests as City may require to verify that any corrective actions,
including, without limitation, redesign, repairs, and replacements comply with the requirements of
the Contract. All costs associated with such corrective actions and testing, including the removal,
replacement, and reinstitution of equipment and materials necessary to gain access, shall be the
sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers and
manufacturers with respect to any portion of the Work, whether express or implied, are deemed
to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties
and guarantees have been transferred or assigned to City by separate agreement and Contractor
agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event
that Contractor fails to perform its obligations under this Section, or under any other warranty or
guaranty under this Contract, to the reasonable satisfaction of City, City shall have the right to
correct and replace any defective or non-conforming Work and any work damaged by such work
or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be
obligated to fully reimburse City for any expenses incurred hereunder upon demand.
3.18 Employee/Labor Certifications.
3.18.1 Contractor’s Labor Certification. By its signature hereunder, Contractor
certifies that he is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Worker’s Compensation or to undertake
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self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Work. A certification form for this purpose,
which is attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be
executed simultaneously with this Contract.
3.18.2 Equal Opportunity Employment. Contractor represents that it is an
equal opportunity employer and that it shall not discriminate against any employee or applicant
for employment because of race, religion, color, national origin, ancestry, sex, age or other
interests protected by the State or Federal Constitutions. Such non-discrimination shall include,
but not be limited to, all activities related to initial employment, upgrading, demotion, transfer,
recruitment or recruitment advertising, layoff or termination.
3.18.3 Verification of Employment Eligibility. By executing this Contract,
Contractor verifies that it fully complies with all requirements and restrictions of state and federal
law respecting the employment of undocumented aliens, including, but not limited to, the
Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall
require all subcontractors and sub-subcontractors to comply with the same.
3.19 Termination. This Contract may be terminated by City at any time, either with our
without cause, by giving Contractor three (3) days advance written notice. In the event of
termination by City for any reason other than the fault of Contractor, City shall pay Contractor for
all Work performed up to that time as provided herein. In the event of breach of the Contract by
Contractor, City may terminate the Contract immediately without notice, may reduce payment to
Contractor in the amount necessary to offset City’s resulting damages, and may pursue any other
available recourse against Contractor. Contractor may not terminate this Contract except for
cause. In the event this Contract is terminated in whole or in part as provided, City may procure,
upon such terms and in such manner as it may determine appropriate, services similar to thos e
terminated. Further, if this Contract is terminated as provided, City may require Contractor to
provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter
prepared or built by Contractor in connection with its performance of this Contract. Contractor
shall be required to provide such document and other information within fifteen (15) days of the
request.
3.20 General Provisions.
3.20.1 City’s Representative. City hereby designates the General Manager,
or his or her designee, to act as its representative for the performance of this Contract (“City’s
Representative”). City’s Representative shall have the power to act on behalf of City for all
purposes under this Contract. Contractor shall not accept direction or orders from any person
other than City’s Representative or his or her designee.
3.20.2 Contractor’s Representative. Before starting the Work, Contractor shall
submit in writing the name, qualifications and experience of its proposed representative who shall
be subject to the review and approval of City (“′Contractor’s Representative”). Following approval
by City, Contractor’s Representative shall have full authority to represent and act on behalf of
Contractor for all purposes under this Contract. Contractor’s Representative shall supervise and
direct the Work, using his best skill and attention, and shall be responsible for all construction
means, methods, techniques, sequences and procedures and for the satisfactory coordination of
all portions of the Work under this Contract. Contractor’s Representative shall devote full time to
the Project and either he or his designee, who shall be acceptable to City, shall be present at the
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Work site at all times that any Work is in progress and at any time that any employee or
subcontractor of Contractor is present at the Work site. Arrangements for responsible
supervision, acceptable to City, shall be made for emergency Work which may be required.
Should Contractor desire to change its Contractor’s Representative, Contractor shall provide the
information specified above and obtain City’s written approval.
3.20.3 Contract Interpretation. Should any question arise regarding the
meaning or import of any of the provisions of this Contract or written or oral instructions from City,
the matter shall be referred to City’s Representative, whose decision shall be binding upon
Contractor.
3.20.4 Anti-Trust Claims. This provision shall be operative if this Contract is
applicable to California Public Contract Code Section 7103.5. In entering into this Contract to
supply goods, services or materials, Contractor hereby offers and agrees to assign to City all
rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton
Act (15 U.S.C. Section 15) or 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 the Contract. This assignment shall be made and
become effective at the time City tender final payment to Contractor, without further
acknowledgment by the Parties.
3.20.5 Notices. All notices hereunder and communications regarding
interpretation of the terms of the Contract or changes thereto shall be provided by the mailing
thereof by registered or certified mail, return receipt requested, postage prepaid and addressed
as follows:
CONTRACTOR:
BC Construction and Electric
2708 Alder Avenue
Morro Bay, CA 93442
Attn: Bryan Carlson, Owner
CITY:
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Attn: Matthew Downing, City Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit
in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice
shall be deemed adequate notice on the date actual notice occurred, regardless of the method of
service.
3.20.6 Time of Essence. Time is of the essence in the performance of this
Contract.
3.20.7 Assignment Forbidden. Contractor shall not, either voluntarily or by
action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by
Contractor herein without the prior written consent of City. If Contractor attempts an assignment
or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option,
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PROFESSIONAL SERVICES AGREEMENT
terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to
Contractor or its assignee or transferee.
3.20.8 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.20.9 Laws; Venue. This Contract shall be interpreted in accordance with the
laws of the State of California. If any action is brought to interpret or enforce any term of this
Contract, the action shall be brought in a state or federal court situated in the County of Ventura,
State of California.
3.20.10 Counterparts. This Contract may be executed in counterparts, each of
which shall constitute an original.
3.20.11 Successors. The Parties do for themselves, their heirs, executors,
administrators, successors, and assigns agree to the full performance of all of the provisions
contained in this Contract.
3.20.12 Solicitation. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid
nor has it agreed to pay any company or person, other than a bona fide employee working solely
for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Contract. For breach or violation of
this warranty, City shall have the right to terminate this Contract without liability.
3.20.13 Conflict of Interest. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid
nor has it agreed to pay any company or person, other than a bona fide employee working solely
for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Contract. For breach or violation of
this warranty, City shall have the right to rescind this Contract without liability. For the term of this
Contract, no director, official, officer or employee of City, during the term of his or her service with
City, shall have any direct interest in this Contract, or obtain any present or anticipated material
benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees or
subcontractors to file, a Statement of Economic Interest with City’s Filing Officer as required under
state law in the performance of the Work.
3.20.14 Certification of License.
3.20.14.1 Contractor certifies that as of the date of execution of this
Contract, Contractor has a current contractor’s license of the classification indicated below under
Contractor’s signature.
3.20.14.2 Contractors are required by law to be licensed and regulated
by the Contractors’ State License Board which has jurisdiction to investigate complaints against
contractors if a complaint regarding a patent act or omission is filed within fo ur (4) years of the
date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural
defects must be filed within ten (10) years of the date of the alleged violation. Any questions
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PROFESSIONAL SERVICES AGREEMENT
concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O.
Box 26000, Sacramento, California 95826.
3.20.15 Authority to Enter Contract. Each Party warrants that the individuals
who have signed this Contract have the legal power, right and authority to make this Contract and
bind each respective Party.
3.20.16 Entire Contract. This Contract contains the entire agreement of the
Parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements.
3.20.17 Non-Waiver. None of the provisions of this Contract shall be
considered waived by either party, unless such waiver is specifically specified in writing.
3.20.18 City’s Right to Employ Other Contractors. City reserves right to employ
other contractors in connection with this Project or other projects.
3.21 Funding Provisions. Reserved.
[Signatures on Next Page]
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PROFESSIONAL SERVICES AGREEMENT
SIGNATURE PAGE FOR CONSTRUCTION CONTRACT
BETWEEN CITY OF ARROYO GRANDE
AND BC CONSTRUCTION & ELECTRIC
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date
first written above.
CITY OF ARROYO GRANDE
Approved:
By: _______________________________
Matthew Downing, City Manager
ATTEST:
By: _______________________________
Jessica Matson, City Clerk
APPROVED AS TO FORM:
By: _______________________________
Isaac Rosen, Best Best & Krieger
Legal Counsel
BC Construction & Electric
By:
Bryan Carlson, Owner
packahs@gmail.com
Class B and C10, No. 775792
Contractor’s License No. and Classification
1000010666__________________________
DIR Registration Number
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EXHIBIT “A”
SCHEDULE
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EXHIBIT “B”
SCOPE OF WORK:
PLANS AND TECHNICAL SPECIFICATIONS
BID BOOK DATED MAY 1, 2026, ADDENDUM 1 DATED MAY 19, 2026 HEREBY
INCORPORATED BY REFERENCE
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EXHIBIT “C”
SPECIAL CONDITIONS
ARTICLE 1. BONDS
Concurrently with this Contract, the Contractor shall deliver to City four identical counterparts of
the Performance Bond and Payment Bond on the forms supplied by City and included as Exhibit
“F” to the Contract. The surety supplying the bond must be an admitted surety insurer, as defined
in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of
California and satisfactory to City. The Performance Bond and the Payment Bond shall be for
one hundred percent (100%) of the Total Contract Price.
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ATTACHMENT 3
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EXHIBIT “D”
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EXHIBIT “E”
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
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EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Arroyo Grande (hereinafter referred to as “City”) has
awarded to BC Construction & Electric (hereinafter referred to as the “Contractor”) an agreement
for City Hall Balcony & Exterior Rehabilitation Project (hereinafter referred to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in
the Contract for the Project dated ________________, (hereinafter referred to as “Contract
Documents”), the terms and conditions of which are expressly incorporated herein by reference;
and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms
thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and
_____________________________________________ as Surety, a corporation organized and
duly authorized to transact business under the laws of the State of California, are held and firmly
bound unto City in the sum of ___________________________ DOLLARS, ($____________),
said sum being not less than one hundred percent (100%) of the total amount of the Contract, for
which amount well and truly to be made, we bind ourselves, our heirs, executors and
administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, 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 agreements in the Contract
Documents and any alteration thereof made as therein provided, on its part, to be kept and
performed at the time and in the manner therein specified, and in all respects according to their
intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all
materials and workmanship; and shall indemnify and save harmless City, its officers and agents,
as stipulated in said Contract Documents, then this obligation shall become null and void;
otherwise it shall be and remain in full force and effect.
As a condition precedent to the satisfactory completion of the Contract Documents, unless
otherwise provided for in the Contract Documents, the above obligation shall hold good for a
period of one (1) year after the acceptance of the work by City, during which time if Contractor
shall fail to make full, complete, and satisfactory repair and replacements and totally protect City
from loss or damage resulting from or caused by defective materials or faulty workmanship,
Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety
hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall
limit City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity,
including, but not limited to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by City to be, in default under the Contract
Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall
promptly, at City’s option:
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(1) Take over and complete the Project in accordance with all terms and conditions in
the Contract Documents;
(2) Obtain a bid or bids for completing the Project in accordance with all terms and
conditions in the Contract Documents and upon determination by Surety of the
lowest responsive and responsible bidder, arrange for a Contract between such
bidder, the Surety and City, and make available as work progresses sufficient
funds to pay the cost of completion of the Project, less the balance of the contract
price, including other costs and damages for which Surety may be liable. The term
“balance of the contract price” as used in this paragraph shall mean the total
amount payable to Contractor by City under the Contract and any modification
thereto, less any amount previously paid by City to the Contractor and any other
set offs pursuant to the Contract Documents; or
(3) Permit City to complete the Project in any manner consistent with local, California
and federal law and make available as work progresses sufficient funds to pay the
cost of completion of the Project, less the balance of the contract price, including
other costs and damages for which Surety may be liable. The term “balance of the
contract price” as used in this paragraph shall mean the total amount payable to
Contractor by City under the Contract and any modification thereto, less any
amount previously paid by City to the Contractor and any other set offs pursuant
to the Contract Documents.
Surety expressly agrees that City may reject any contractor or subcontractor which may
be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid
from Contractor for completion of the Project if City, when declaring the Contractor in default,
notifies Surety of City’s objection to Contractor’s further participation in the completion of the
Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension of
time, alteration or addition to the terms of the Contract Documents or to the Project to be
performed thereunder shall in any way 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
Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845
of the California Civil Code.
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IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of
______________, 20__).
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium
charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety
and Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to
do so must be attached hereto.
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public,
personally
appeared , who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the
document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Arroyo Grande (hereinafter designated as the “City”) has awarded
to BC Construction & Electric hereinafter designated as the “Principal,” a contract (“Contract”) to
construct the City Hall Balcony & Exterior Rehabilitation Project (hereinafter referred to as the
“Project”).
WHEREAS, the work to be performed by the Principal is more particularly set forth in the
Contract, the terms and conditions of which are expressly incorporated by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract;
providing that if said Principal or any of its Subcontractors shall fail to pay for any materials,
provisions, provender, equipment, or other supplies used in, upon, for or about the performance
of the work contracted to be done, or for any work or labor done thereon of any kind, or for
amounts due under the Unemployment Insurance Code or for any amounts required to be
deducted, withheld, and paid over to the Employment Development Department from the wages
of employees of said Principal and its Subcontractors with respect to such work or labor the Surety
on this bond will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety,
are held and firmly bound unto City in the penal sum of ______________ Dollars ($___________)
lawful money of the United States of America, for the payment of which sum well and truly to be
made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly
and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its
subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of
the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or
other supplies, used in, upon, for or about the performance of the work contracted to be done, or
for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance
Code with respect to work or labor performed under the contract, or for any amounts required to
be deducted, withheld, and paid over to the Employment Development Department or Franchise
Tax Board from the wages of employees of the contractor and his subcontractors pursuant to
Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety
or Sureties will pay for the same, in an amount not exceeding the sum herein above specified,
and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such
suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation
expenses.
This bond shall inure to the benefit of any of the persons named in Section 9100 of the
Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon
this bond.
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or
released from the obligation of this bond by any change, extension of time for performance,
addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement
pertaining or relating to any scheme or work of improvement herein above described, or pertaining
or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or
modification of any terms of payment or extension of the time for any payment pertaining or
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relating to any scheme or work of improvement herein above described, 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 by any fraud practiced by
any person other than the claimant seeking to recover on the bond and that this bond be construed
most strongly against the Surety and in favor of all persons for whose benefit such bond is given,
and under no circumstances shall Surety be released from liability to those for whose benefit such
bond has been given, by reason of any breach of contract between the owner or City and original
contractor or on the part of any obligee named in such bond, but the sole conditions of recovery
shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been
paid the full amount of his claim and that Surety does hereby waive notice of any such change,
extension of time, addition, alteration or modification herein mentioned and the provisions of
sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of
______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the
Surety to do so much be attached hereto.
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to
do so must be attached hereto.
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public,
personally
appeared , who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the
document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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EXHIBIT “G”
CARB FLEET COMPLIANCE CERTIFICATION
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