AGENDA
ITEM
9 AGENDA
CALEXICO California ITEM
WHERL CALIFORNIA AND MEXICO MEET
9 CITY COUNCIL
AGENDA STAFF REPORT
DATE: April 1, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin A. Martinez, City Manager Br
REVIEWED BY: Karla Chaparro, Finance Director Je
PREPARED BY: Jesus Villegas, Public Works Director/City Engineer V SUBJECT: Alley Improvement Project - Phase III (Project No. 2026-100):
a) Award Bid Proposal and Authorize City Manager to Sign Construction Agreement between the City of Calexico and Rove Engineering, Inc. in the Amount of $899,824.00 for Alley Improvement Project - Phase III (Project No. 2026-100).
b) Authorize City Manager to Approve Any Future Change Orders Not-to- Exceed $89,982.40 (10% of Rove Engineering, Inc. Base Bid) as per City Ordinance No. 1218
c) Reject Bid Proposals from LC Paving & Sealing, Inc. due to Non- Responsive Bid.
==== =====—=======
Recommendation:
It is recommended that the City Council of the City of Calexico approve the following items:
a) Award Bid Proposal and Authorize City Manager to Sign Construction Agreement between the City of Calexico and Rove Engineering, Inc. in the Amount of $899,824.00 for Alley Improvement Project - Phase III (Project No. 2026-100). b) Authorize City Manager to Approve Any Future Change Orders Not-to-Exceed $89,982.40 (10% of Rove Engineering, Inc. Base Bid) as per City Ordinance No. 1218. c) Reject Bid Proposals from LC Paving & Sealing, Inc. due to Non-Responsive Bid.
Background:
The Imperial County Air Pollution Control District (ICAPCD) received a federal grant through the Environmental Protection Agency (EPA) 2021 Targeted Airshed Grant Program to assist the City of Calexico to pave approximately 3.46 miles of unpaved alleyways in Calexico in an attempt to mitigate PM10 and PM2.5.
On December 1, 2021 and March 16, 2022, the City Council of the City of Calexico authorized the City Manager to enter into a Funding Agreement with ICAPCD for the Alleyway Paving Project.
On June 7, 2023, the City Council of the City of Calexico authorized the City Manager to file Notice of Completion for Alley Improvement Project - Phase I. Total construction cost for Alley Improvement Project - Phase I was $765,683.04.
On July 2, 2025, the City Council of the City of Calexico authorized the City Manager to file Notice of Completion for Alley Improvement Project - Phase II. Total construction cost for Alley Improvement Project - Phase I! was $1,117,549.73.
On January 21, 2026, the City Council approved the bid documentation for Alley Improvement Project - Phase Ill and authorized the Public Works Department to send the project out to bid.
The project includes grading base and subgrade preparation for installation of class Il base, new asphalt concrete pavement, remove and replace concrete curb and gutter, driveways, surveying work, utility adjustments and traffic control.
The alleyways that will be improved in Phase Ill are the following:
# Alley From To System Type
Alley 2 Pierce Ave. Alley 3 Class I|
2 Alley 3 Lincoln St. Grant St. Class I|
3 Alley 4 Pierce Ave. Cesar Chavez Blvd Class Il
4 Alley 11 State Hwy 98 10th Ave. Class I|
5 Alley 14 Paulin Ave. Rockwood Ave. Class I|
6 Alley 23 5th St. 4th St. Class I|
7 Alley 32 Dool Ave. Beach Ave. Class Il
8 Alley 36 Renaud Ct./Alley Dool Ave. Class II
9 Alley 37 2nd St. 2nd St. Class !!
10 Alley 38 Beach Ave. Andrade Ave. Class II
11 Alley 39 Unnumbered Alley CK Clarke St. Class II
12 N/A Sherman St. Harold Ave Asphalt
13 Sherman St. Emilia Ave Pierce Ave Asphalt
Discussion and Analysis:
On March 9, 2026, the Office of the City Clerk received the following bids:
# Company Base Bid Comments)
1 | Rove Engineering, Inc. | $899,824.00
2 2 Pyramid Construction and $980,915.00
Aggregates Inc
3 | LC Paving & Sealing, Inc. $1,246,510.00 Non-Responsive After reviewing the bid documentation from all bidders, City staff found the following:
1. Rove Engineering, Inc.,
Rove Engineering, Inc. is the lowest responsible bidder and holds the necessary contractor license for said project.
2. LC Paving & Sealing, Inc.
LC Paving & Sealing, Inc. bid contains an error (see Attachment No. 1). The bid submitted shows a discrepancy, LC Paving & Sealing, Inc. did not submit the correction bid proposal form specified in Addendum No. 2.
City staff is recommending that the City Council of the City of Calexico award the bid proposal to Rove Engineering, Inc. and authorize the City Manager to sign construction agreement with Rove Engineering, Inc. in the amount of $899,824.00 for Alley Improvement Project - Phase III (Project No. 2026-100).
Fiscal Impact:
Capital Improvement Program Budgeted Item for FY 2025-2026 Revenue
Fund No. 412-91-903-43111-000 (State Grant) $989,806.40 Total $989,806.40
Expenditure
Rove Engineering, Inc. (Original Contract) $899,824.00
Fund No. 412-91-903-56003-000
10% Contingency $89,982.40
Total $989,806.40
Coordinated With:
City Manager's Office.
Finance Department.
Public Works Department.
Office of the City Clerk.
Attachments):
1. Bid Tabulation Sheet
2. Rove Engineering, Inc. Bid Proposal Form.
3. Pyramid Construction and Aggregates Inc. Bid Proposal Form.
4. LC Paving & Sealing, Inc. Bid Proposal Form.
3 5. Rove Engineering, Inc. Construction Agreement.
ATTACHMENT NO. 1
CITY OF CALEXICO
OFFICE OF THE CITY CLERK
BID TABULATION
Bid: Alley Improvement Project - Phase III
Dept.: Public Works
Date: March 9, 2026
Time:
Location: Counci Chambers Ciy Hall, 608 Heber Avenue, Calexico, CA
COMPANY TOTAL
Le Paving + Sealing, Inc. 1,246,510.00
Rove Engineering, In. $ 899,824.00
Pyramid Constretion 980,915.00
and Aggregates, Inc.
3-9-2024
Carla Gomez Silva, Deputy Cler Date
CITY OR CALEXICO
PUBLIC WORKS DEPARTMENT
ALLEY IMPROVEMENT PROJECT - PHASE I
INORRICIAL, BID TART ATION
Bid Opening: March 9, 2026
Time: 3:00p.m.
Location: City Council Chambers, City Hall, 608 Heber Avenue, Calexico, CA Pyramid Construction
Engineer's Estimate Rove Engincering, Inc and Aggregates, Inc. LC Paving & Scaling, Inc.
Items Approximate Unit Total Unit Total Unit Total Unit Total Unit Description
No. Quantify Price Price Price Price
IS Mobilization 65,000.00 65,000.00 2,000.00 9,000.0020,000.00 20,000.00 107,500.00 107,500.00 14,200 SY 12" of Subgrade Removal and Disposal and Compaction of Existing Material to 90%
25.00 355.000.00 15.00 213,000,00 15.00 213,000.00 23.00 326,600.00 14,200 SY Fumish and Install 12" Class It Base Compacted to 95% 30.00 426,000.00 17.00 | 241,400.00 17,00 241,400,00 30.40 431,680.00| 4 4,020 SF Remove & Replace Concrete Driveway Approach and Existing Sidewalk
34.00 136.680.00 34.50 138,690.00 35.00 140,700.00 24.25 97,485.00 Curb and Gutter. Include Sawcut and Removal Existing AC to Allow for Construction of 430 LF
New PCC Concrete Curb & Gutter 70.00 30,100.00 59.00 25,370.00 100.00 43,000.00 91.00 39,130.00 2 EA Double Adjustment Water Valve 1,700.00 3.400.00 1,750.00 3,500.00 1,500.00 3,000.00 2,160.00 4,320.00 59 EA Double Adjustment Water Meter 450.00 26,550.00 328.00 19.352.00 500.00 29,500.00 855.00 50,445.00 8 - EA Adjust Sewer Manhole 2,500.00 2,500.00 2,420.00 2,420.00 | 2,000.00 2,000.00 3,145.00 3.145.00 610 LF Construct Pavement Extension Joint 28.00 17.080.00 7.20 4,392.00 20.00 12,200.00 13.00 7,930.00 10 915 TON Fumish and Install 4" of Asphalt Concrete Pavement 165.00 150.975.00 128.00 117,120.00 126.00 115,290.00 175.00 160,125.00
1500 LF Furnish and Install 2"x8* Pressure Treated Boards 10.00 15,000.00 2.00 13,500.00 20.00 30,000.00 14.50 21,750.00 12 LS Furish and Install Striping and Signage 10,500.00 10,500.00 16,630.00 16,630.00 18,000.00 18,000.00 9,960.00 9,960.00 LS. Shoulder Grading and Construct Drainage Swale 9,800.00 9,800.00 6,950.00 6,950.0015,000.00 15,000.00 24,100.00 24,100.00 LS Remove & Relocate Existing Fence Away from Paving Areas 8,500.00 8,500.00 6,320.00 6,320.0020,000.00 20,000.00 15 Traffic Control and Construction Area Signs 12,500.00 12,500.00 13,860.0013,860.0020,000.00 20,000.00 28,800.00 28,800.00 LS Construction Staking 28,000.00 28,000.00 17,190.00 17,190.00 | 17,825.00 17,825.00 24,250.00 24,250.00 IS [Dust Control Plan and Implementation 9,500.00 9,500.00 10,000.00 10,000.0010.000.00 10,000.00 8,000.00 8,000.00 LS Material Testing per City of Calexico OAP Program 26,500.00 26,500.00 41,130.00 41,130.0030,000.00 30,000.00 25,000.00 25,000.00 S 1,333,585.00 S899,824.00 $ 980,915.00 $ 1,370,220.00
Discrepancy: LC Paving &
Scaling, Inc. did not submit
correci Bid Form as per
Addendum No. 2
ATTACHMENT NO. 2
Attachment No. 2 - Rove Engineering, Inc.
Engineer's Cost Estimate 03/05/26
Calexico Alley Improvement Project - Phase III
Item No. Quantities Unit Description Unit Cost Total
1 LS Mobilization $9,000.00 $9,000.00
14,200 SY 12" of Subgrade Removal and
Disposal and Compaction of Existing $15.00 $213,000.00
Subbase Material to 90%
3 14,200 SY Furnish and Instal 12" Class ll Base $17.00 Compacted to 95% $241,400.00
4 4,020 SF Remove & Replace Concrete
Driveway Approach and Existing $34.50 $138,690.00
Sidewalk
5 430 LF New Curb and Gutter. Include
Sawcut and Removal Existing AC to
Allow for Construction of New PCC $59.00 $25,370.00
Concrete Curb & Gutter
6 2 EA Double Adjustment Water Valve
$1,750.00 $3,500.00
7 59 EA Double Adjustment Water Meter $328.00
$19,352.00
8 1 EA Adjust Sewer Manhole $2,420.00 $2.420.00
9 610 LF Construct Pavement Extension Joint
$7.20 $4,392.00
915 Ton Furnish and Install 4" of Asphalt $128.00
$117,120.00
Concrete Pavement
11 1500 LF Furnish and Install 2" × 8" Pressure
Treated Boards $9.00 $13,500.00
12 1 Furnish and Install Striping and
Signage $16,630.00 $16,630.00
13 1 LS Shoulder Grading and Construct
Drainage Swale $6,950.00 $6,950.00
14 1 LS Remove and Relocate Existing Fence
Away from Paving Areas $6,320.00 $6,320.00
15 1 LS Traffic Control and Construction Area
Signs $13,860.00 $13,860.00
16 1 LS Construction Staking $17,190.00 $17,190.00
17 1 LS Dust Control Plan and
Implementation $10,000.00 $10,000.00
18 1 LS Material Testing per City of Calexico
QAP Program $41,130.00 $41,130.00
14 1 LS Traffic Control and
_nA NA
Construction Area Signs
1 LS Construction Staking NA NA
16 1 LS Dust Control Plan and
Implementation NA NA
17 1 LS Material Testing per City of
Calexico QAP Program NA NA
Grand Total Bid: $899,82400
Grand Total Bid Price Written in words: Eight hundred ninety-nine thousand eight hundred twenty-four dollars
and zero cents
1.00 - The undersigned hereby acknowledges the receipt of the following addendum:
None _ No. 1X _ No. 2_X: No. 3 No. 4 _; No. 5
2.00 - The undersign hereby certifies that this proposal/bid is genuine and not made in the interest of or on behalf of any undisclosed person, firm or corporation.
3.00 - The undersigned hereby accepts on the behalf of his firm all provisions and requirements of the contract documents, including but not limited to those related to time of completion and liquidated damages.
4.00 - The undersigned hereby certifies that they are authorized representative of the firm on whose behalf this proposal/bid is submitted and that they are acting at the direction and with the required approval of said firm, which is identified as follows:
Name of firm Rove Engineering, Inc.
Address of firm:
398 East Aurora Dr, El Centro, CA 92243
Telephone number: (760 425-0001 Fax number: (877) 775-7229 . Contractor's license number: 1046101 Type: A
Signed: President Date: 03/09/2026
END OF PROPOSAL BID FORM
Page |62
ATTACHMENT NO. 3
•
Attachment No. 3 - Pyramid Construction
Engineer's Cost Estimate 03/05/26
Calexico Alley Improvement Project - Phase III
Item No. Quantities Unit Description Unit Cost Total
1 1 LS Mobilization 20,000.00 twenly 320,000.00 twenty thousand thousand, zero cents 222900.00
2 14,200 SY 12" of Subgrade Removal and 15.00
fifteen, zero cents two hundred thirteen
Disposal and Compaction of Existing thousand, zero cents Subbase Material to 90%
3 14,200 SY Furnish and Install 12" Class II Base 17.00 seventeen, $241,100.00 two hundred zero cents hungred, zero cents, our
Compacted to 95%
4 4,020 SF Remove & Replace Concrete 35.00 thirty-five $140,700.00 zero cents
Driveway Approach and Existing
Sidewalk
5 430 LF New Curb and Gutter. Include 100.00 $43,000.00 one hundred, zero cente forty-three thousand,
Sawcut and Removal Existing AC to zero cents.
Allow for Construction of New PCC
Concrete Curb & Gutter
6 2 EA Double Adjustment Water Valve (1,500.00 $3,000.00 one thousand, five three thousand, zero cants
hundred, zero cents
7 59 EA Double Adjustment Water Meter 500.00 $29,500.00 he hunter cons ve inter, or ente
8 1 EA Adjust Sewer Manhole 2,000.00 two thousand 32,000.00 two thousand, zero cents
9 610 LF Construct Pavement Extension Joint
twenty, zero cents veive thousand, tv
undred, zero cen
10 915 Ton Furnish and Install 4" of Asphalt 726.00 $115,290.00 Concrete Pavement zero cents
11 1500 LF Furnish and Install 2" × 8" Pressure
cents
Treated Boards
12 1 LS Furnish and Install Striping and 18,000:00 3500000 eighteen thousand, eighteen thousand,
zero cents zero cents
Signage
13 1 LS Shoulder Grading and Construct 15,000.00
$15,000.00
niteen thousand, zero fifteen thousand, zero
Drainage Swale cents
14 1 LS Remove and Relocate Existing Fence 20,00000
Away from Paving Areas twenly thousand,
zero cents
15 1 $20,000.00
Trafic Control and Construction Are on one, 2no0 twenty thousand, zero Signs cents
16 LS Construction Staking
17 1 LS Dust Control Plan and 10,000.00 510,000.0
Controusand, zero ten thousand, zaro cants
Implementation
18 1 Material Testing per City of Calexico 30,000.00 $30,000.00 thirty thousand, zero thirty thousand, zero cents
QAP Program
PROPOSAL BID FORM
TO THE PUBLIC WORKS DIRECTOR/CITY ENGINEER OF THE CITY OF CALEXICO:
The undersigned hereby declares that he has carefully examined the location of the proposed work that he has examined the plans and specifications and read the accompanying instructions to bidders and hereby proposes to furnish all material except owner furnished materials, and do all work required to complete the said work in accordance with said plans and specifications and special provisions for the unit prices set forth in the following schedule.
The bidder shall furnish prices for all items shown in the proposal.
Pyramid Construction and Aggregates, Inc.
Company Name:
Item Quantities Unit Description Unit Cast Total
No.
1 1 LS Mobilization
2 12,800 SY 12" of Subgrade Removal and
Disposal and Compaction of
Existing Material to 90%
3 13,000 SY Furnish and Install 12" Class I|
Base Compacted to 95%
4 4,020 SF Remove & Replace Concrete
Driveway Approach and
Existing Sidewalk
5 430 New Curb and Gutter. Include
Sawcut and Removal Existing
AC to Allow for Construction of
New PCC Concrete Curb &
Gutter
2 EA Double Adjustment Water
Valve
7 59 EA Double Adjustment Water
Meter
8 1 Adjust Sewer Manhole
9 LF Construct Pavement Extension
Joint
10 630 Ton Furnish and Install 4" of
Asphalt Concrete Pavement
11 1270 Furnish and Install 2"x 8"
Pressure Treated Boards
12 1 LS Furnish and Install Striping and
Signage
13 1 Shoulder Grading and
Construct Drainage Swale
Page |61
35205
••
14 1 LS Traffic Control and
Construction Area Signs
15 1 LS Construction Staking
1 LS Dust Control Plan and
Implementation
17 LS Material Testing per City of
Calexico QAP Program
$980,915.00
Grand Total Bid:
Grand Total Bid Price Written in words: —
Nine hundred eighty thousand, nine hundred fifteen dollars and zero cents.
1.00 - The undersigned hereby acknowledges the receipt of the following addendum:
None ; No. 1 V ; No. 2_ V; No. 3 _; No. 4 _ ; No. 5
2.00 - The undersign hereby certifies that this proposal/bid is genuine and not made in the interest of or on behalf of any undisclosed person, firm or corporation.
3.00 - The undersigned hereby accepts on the behalf of his firm all provisions and requirements of the contract documents, including but not limited to those related to time of completion and liquidated damages.
4.00 - The undersigned hereby certifies that they are authorized representative of the firm on whose behalf this proposal/bid is submitted and that they are acting at the direction and with the required approval of said firm, which is identified as follows:
Name of firm: Pyramid Construction and Aggregates, Inc.
Address of firm:
839 Dogwood Road Heber, CA 92249
Telephone number: (760) 337-5839 Fax number: (760) 337-5993 . Contractor's cense, num 866533 _Type:_ A, C21
Signed: _ Date:_03/09/2026
END OF PROPOSAL BID FORM
Page |62
ATTACHMENT NO. 4
Attachment No. 4 - LC Paving &
Sealing
PROPOSAL BID FORM
TO THE PUBLIC WORKS DIRECTOR/CITY ENGINEER OF THE CITY OF CALEXICO:
The undersigned hereby declares that he has carefully examined the location of the proposed work that he has examined the plans and specifications and read the accompanying instructions to bidders and hereby proposes to furnish all material except owner furnished materials, and do all work required to complete the said work in accordance with said plans and specifications and special provisions for the unit prices set forth in the following schedule.
The bidder shall furnish prices for all items shown in the proposal.
Company Name: _LC Paving & Sealing, Inc.
Item Quantities Unit Description Unit Cost Total
No.
1 1 LS Mobilization $ 107,500.00 $ 107,500.00
2 12,800 SY 12" of Subgrade Removal and
Disposal and Compaction of $23.00 $ 294,400.00
Existing Material to 90%
3 13,000 SY Furnish and Install 12" Class I
Base Compacted to 95% $ 30.40 $ 395,200.00
4 4,020 SF Remove & Replace Concrete
Driveway Approach and $ 24.25 $ 97,485.00
Existing Sidewalk
5 430 New Curb and Gutter. Include
Sawcut and Removal Existing
AC to Allow for Construction of $91.00 $ 39,130.00
New PCC Concrete Curb &
Gutter
6 2 EA Double Adjustment Water
Valve $2,160.00 $4,320.00
59 EA Double Adjustment Water
$ 855.00 $ 50,455.00
Meter
8 1 EA Adjust Sewer Manhole $ 3,145.00 $ 3,145.00
9 470 Construct Pavement Extension
Joint $13.00 $6,110.00
10 630 Ton Furnish and Install 4" of
Asphalt Concrete Pavement $175.00 $110,250.00
11 1270 Furnish and Install 2' x8
Pressure Treated Boards $ 14.50 $ 18,415.00
12 1 LS Furnish and Install Striping and
Signage $9,960.00 $9,960.00
13 1 LS Shoulder Grading and
Construct Drainage Swale $24,100.00 $24,100.00
Page |61
14 1 LS Traffic Control and
Construction Area Signs $ 28,800.00 $ 28,800.00
15 1 LS Construction Staking $ 24,250.00 $ 24,250.00
16 1 LS Dust Control Plan and
Implementation $ 8,000.00 $8,000.00
17 1 Material Testing per City of
Calexico QAP Program $25,000.00 $25,000.00
Grand Total Bid: 1,246,510.00
Grand Total Bid Price Written in words: One Milion Two Hundred Forty Six Thousand Five Hundred Ten Dollars and Zero Cents
1.00 - The undersigned hereby acknowledges the receipt of the following addendum:
None_ - No. 14 _ No. 2. _; No. 3 _; No. 4 _; No. 5.
2.00 - The undersign hereby certifies that this proposal/bid is genuine and not made in the interest of or on behalf of any undisclosed person, firm or corporation.
3.00 - The undersigned hereby accepts on the behalf of his firm all provisions and requirements of the contract documents, including but not limited to those related to time of completion and liquidated damages.
4.00 - The undersigned hereby certifies that they are authorized representative of the firm on whose behalf this proposal/bid is submitted and that they are acting at the direction and with the required approval of said firm, which is identified as follows:
Name of firm:
LC Paving & Sealing, Inc.
Address of firm:
620 Alpine Way Escondido CA 92029
Telephone number: (769 752-1743 Fax number: (760) 752-1674 Contractor's license number: 621610 _Type:_A, B, & C-12 Signed. Date: 3/9/2026
END OF PROPOSAL BID FORM
Page |62
ATTACHMENT NO. 5
CONSTRUCTION AGREEMENT
CITY OF CALEXICO, CALIFORNIA
THIS AGREEMENT is made this 15t day of April, 2026, by and between the City of Calexico, a Municipal Corporation of the State of California ('City") and Rove Engineering, Inc. ("Contractor"). The City and the CONTRACTOR for consideration stated herein agree as follows:
1. Description of Project
CONTRACTOR shall provide for the construction of Alley Improvement Project - Phase III, Project No. 2026-100 in accordance with the Invitation for Bids.
2. Description of Work
2.1 CONTRACTOR shall furnish all of the labor, tools, equipment, and services required to perform all of the work in connection with the construction of Alley Improvement Project - Phase II in accordance with the invitation for Bids, incorporated by reference as though fully set herein. Said construction shall be in accordance with the 2018 California Department of Transportation Standard Plans, Labor Surcharge and Equipment Rental Rates in effect on the date the work is accomplished, and the General Prevailing Wage rates dated 2024. Said invitation for bids, Standard Plans, Standard Specifications, Labor Surcharge and Equipment Rental Rates, and General Prevailing Wage Rates are as fully a part of the Agreement as if hereto attached or herein repeated.
2.2 The work to be performed under this Agreement shall conform to the plans entitled "Alley Improvement Project - Phase II" ", incorporated herein as fully a part of this Agreement as if hereto attached or herein repeated.
3. Time for Completion
The work shall be commenced on the date stated in Notice to Proceed, and shall be completed within the allotted working days after the date stated in such Notice.
Compensation
4.1 City will pay the CONTRACTOR for the performance of this Agreement according to the terms and conditions contained in the Project's Invitation for Bids and Proposal or bid submittal by CONTRACTOR. CONTRACTOR will take full payment in accordance with the following item prices incorporated as part of the proposal or bid submitted by CONTRACTOR.
4.2 CONTRACTOR agrees to receive and accept said compensation as full payment for furnishing all materials and for doing all the work contemplated and embraced in this agreement; also for all loss or damage, arising out of the nature of the work aforesaid, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by CITY and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work and for well and faithfully completing the work in the manner and according to the plans and specification, and the requirements of the CITY Engineer. This provision in no way limits the CONTRACTOR's duties under other provisions herein.
Industry Standards
The CONTRACTOR agrees that is performance, and that of its employees or subcontractors, under this Agreement shall be performed in accordance with the standards customarily adhered to by an experienced and competent contractor using the degree of care and skill ordinarily exercised by reputable professionals practicing in the same field in the State of California. Where approval by the CITY, the CITY Manager, or other representatives of the CITY is required, it is understood to be general approval only and does not relieve the CONTRACTOR of responsibility for complying with all applicable laws, codes and quality construction and business practices.
6. Insurance
The CONTRACTOR shall not begin performing under this Agreement until it has: (a) obtained insurance certificates reflecting evidence of all insurance required herein; however, the CITY reserves the right to request, and the CONTRACTOR shall submit, copies of any policy upon reasonable request by the CITY; (b) obtained CITY approval of each company or companies as required herein; and (c) confirmed that all policies contain the specific provisions required herein. Further the CONTRACTOR shall not modify any policy or endorsement thereto which increases the CITY'S exposure to loss for the duration of this Agreement.
6.1 Types of Insurance.
At all times during the term of this Agreement, CONTRACTOR shall maintain insurance coverage as follows:
6.1.1 Commercial General Liability
For all of the CONTRACTOR's operations, including contractual, broad form property damage, completed operations, and independent CONTRACTOR's liability, the CONTRACTOR shall keep in full force and effect, during any and all work on this Project, all applicable insurance to cover personal injury, bodily injury and property damage, providing coverage to a combined single limit of $1,000,000 per occurrence, subject to an annual aggregate of $2,000,000 for general liability, completed operations and personal injury other than bodily injury. Agreementual liability shall include coverage of tort liability of another party to pay for bodily injury or property damage to a third person or organization. Agreementual liability limitation endorsement is not acceptable.
6.1.2 Commercial Automobile Liability
Page |66
For all the CONTRACTOR's automobiles including owned, hired and non-owned automobiles, the CONTRACTOR shall keep in full force and effect, automobile insurance for bodily injury and property damage providing coverage to a combined single limit of $1,000,000 per occurrence. Insurance certificate shall reflect coverage for any automobile [any auto]. The CITY shall be named as an additional insured, but only for liability arising out of the use of CONTRACTOR's automobiles and only arising out of the performance of this Agreement.
6.1.3 Worker's Compensation
For all of the CONTRACTOR's employees who are subject to this Agreement and to the extent required by the State of California, the CONTRACTOR shall keep in full force and effect, a workers compensation policy. That policy shall provide a minimum of $1,000,000 of employees liability coverage and the CONTRACTOR shall provide and endorsement that the insurer waives the right of subrogation against the CITY and its respective elected officials, officers, employees, agents and representatives.
6.2 Rating Requirements
All bonds used to guarantee work and performance under this Agreement and all insurance required by express provision of this Agreement shall be carried only by responsible insurance companies that have been at least and "A" or "A." and "V" rating by AM BEST, that are licensed and approved by the State to do business in the State of California, and that have been approved by the CITY.
6.3 Deductibles
All deductibles on any policy shall be the responsibility of the CONTRACTOR.
6.4 Specific Provisions Required
Each policy required under Section 6 herein, shall expressly provide, and an endorsement shall be submitted to the City, that:
6.4.1 Except as to Workers Compensation, the City of Calexico and is respective elected officials, officers, employees, agents, and representatives shall be named as additional insureds. The CITY's Additional Insured status must be reflected on additional insured endorsement which shall be submitted to the CITY.
6.4.2 The policies are primary and any insurance that may be carried by the CITY is noncontributing, as reflected in an endorsement which shall be submitted to the CITY.
6.4.3 The policies cannot be canceled, non renewed or materially changed except after thirty calendar days prior written notice by the CONTRACTOR to the CITY by certified mail, as reflected in Page |67
an endorsement which shall be submitted to the CITY except for non-payment of premium, in which case ten (10) days notice will be provided.
6.4.4 Before performing under this Agreement, the CONTRACTOR shall provide the CITY with all Certificates of Insurance accompanied with all endorsements.
6.4.5 The CONTRACTOR may obtain additional insurance not required by this Agreement.
7. Agreement or Compliance with Labor Code
CONTRACTOR certifies that he is aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Worker's Compensation or to undertake self insurance in accordance with the provisions of that Code, and will comply with such provisions before commencing the performance of the work of this Agreement.
Control of Agreement
The improvement contemplated in the performance of this contract is a project over which the City of Calexico shall exercise general supervision. The CITY therefore shall have the right to assume full and direct control over this contract whenever the CITY, at its sole discretion, shall determine that its responsibility to the State of California so requires.
9. Conflicting Terms
If an apparent conflict or inconsistency exists between the main body of this Agreement and the bid, proposal or other incorporated document, the main body of this Agreement shall control. If a conflict exists between applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirements shall control. Each party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement.
10. Indemnification and Hold Harmless Agreement
10.1 With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees (for attorney of CITY's choosing), or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the CONTRACTOR, or the CONTRACTORS's employees, agents, and officers, arising out of any services performed involving this project, the CONTRACTOR agrees to defend, indemnify, protect, and hold harmless the CITY, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the CITY, its agents, officers, or employees which may be in combination with the active or passive negligent Page |68
acts or omissions of the CONTRCTOR, its employees, agents or officers, or any third party. The CONTRACTOR's duty to defend, indemnity, protect and hold harmless shall not include any claims or liabilities arising from the soles negligence or sole willful misconduct of the CITY, its agent, officers or employees. This section in no way alters, affects or modifies any of CONTRACTOR's other obligations and duties herein.
10.2 The CONTRACTOR agrees to pay any and all costs the CITY incurs enforcing the indemnity and defense provisions herein.
11. Notices
In all cases where written notice is required under this Agreement, service shall be deemed sufficient if the notice is deposited in the United States mail, postage paid. Proper notice shall be effective on the date it is mailed, unless provided otherwise in this Agreement. For the purpose of this Agreement, unless otherwise agreed in writing, notice to the parties herein shall be addressed as follows:
CITY CONTRACTOR:
City of Calexico Rove Engineering, Inc.
Public Works Department 398 E. Aurora Drive
608 Heber Avenue El Centro, CA 92244
Calexico, CA 92231
12. Non-Assignment
The CONTRACTOR shall not assign the obligations under this Agreement, whether by express assignment or by sale of the company, nor any monies due or to become due, without the CITY's prior written approval. Any assignment in violation of this paragraph shall constitute a Default and is grounds for immediate termination of this Agreement, at the sole discretion of the CITY. In no event shall any putative assignment create a contractual relationship between the CITY and any putative assignee.
13. Independent Agreements
The CONTRACTOR and any SUBCONTRCTORS employed by the CONTRACTOR shall be independent contractors and not agents of the CITY.
14. Compliance with Controlling Law
The CONTRACTOR shall comply with all laws, ordinances, regulations, and policies of the federal, state and local governments applicable to this Agreement, including California Labor Code section 1720 relating to the payment of prevailing wages, including inspection and land surveying work. In addition, Page |69
the CONTRACTOR shall comply immediately with all directive issues by the CITY or its authorized representatives under authority of any laws, statures, ordinances, rules or regulations. The laws of the State of California shall govern and control the terms and conditions of this Agreement.
Pursuant to the Labor Code of the State of California, or local laws applicable thereto, the CITY has ascertained that the CONTRACTOR shall be responsible for paying prevailing wages as established by the State of California, Director of Industrial Relations. Under Section 1776 of the State Labor Code, the CONTRACTOR, and all subcontractors, are required to keep accurate payroll records. This Section specifies the content thereof, inspection and duplication procedures, and certain notices required of the CONTRACTOR pertaining to their location.
Whenever the CONTRACTOR or any representative, agent or employee Of CONTRACTOR performing a public works project is found by the Department of Industrial Relations ("DIR") or the CITY to be in violation of the prevailing wage requirements imposed by law, the CONTRACTOR shall indemnify and hold CITY harmless from any and all liability arising from such violation, including any and all liability imposed on the City. The CONTRACTOR's duty to indemnify the CITY pursuant to this section shall include any and all costs and expenses incurred by the CITY therefrom, including but not limited to any penalties imposed on the CITY by DIR or any other state agency and reasonable attorney's fees.
Nothing in this section shall be construed to limit, alter or amend the CONTRACTOR's duty to indemnify under any other provisions of this Agreement.
15. Jurisdiction and Venue
The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of the Imperial, State of California.
16. Integration
This Agreement and the exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both parties or an amendment to this Agreement agreed to both Parties. All prior negotiations and agreements are merged into this Agreement.
17. Counterparts
This Agreement may be executed in counterparts, which when taken together shall constitute a single signed original as though all parties had executed the same page.
18. No Waiver
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No failure of either the CITY or the CONTRACTOR to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach or such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach.
19. Severability
The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal.
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IN WITNESS WHEREOF, the parties hereto through their agent duly authorized, have executed this Agreement as of the day and year first above written.
ATTEST:
Veronica L. Alvarado BENJAMIN A. MARTINEZ
City Clerk of the City of Calexico City Manager of the City of Calexico
CONTRACTOR
By:_
Signature Date
Printed Name and Title
Licensed in accordance with an act
Providing for the registration of contractors,
License No.
APPROVED AS TO FORM AND EXECUTION
Best Best & Krieger LLP Date
END OF CONSTRUCTION AGREEMENT
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