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Agenda packet

El Centro City Council
September 16, 2025

Document
Agenda packet
Meeting
September 16, 2025
Body
El Centro City Council
Pages
809
Original file
264.5 MB
Text extracted from the city's file for reading and search. Open the original on elcentroca.api.civicclerk.com. That file is the official record.

AGENDA

CITY OF EL CENTRO

CITY COUNCIL
TUESDAY, SEPTEMBER 16, 2025
City Hall Regular Meeting 3:30 PM

CITY HALL

COUNCIL CHAMBERS
1275 MAIN STREET
EL CENTRO, CA 92243
The public may attend in person. Any member of the public attending in person and wishing to make a comment is asked to complete a speaker slip and follow the instructions below regarding “Notice to the Public”. Any member of the public is invited to submit public comments in advance of the meeting to be answered at the meeting. Please email your questions to [email protected] or call 760-337-4515 by September 16, 2025.

COUNCIL MEMBERS, STAFF AND THE PUBLIC MAY ATTEND VIA ZOOM.

To participate and make a public comment in person, via Zoom or telephone, please raise your hand, speak up and introduce yourself.

Join Zoom Meeting:
https://us06web.zoom.us/j/4180375132?pwd=Rmo5UjZ1cWdyV1VoWUhSZWp6R0tVZz09&omn=82496243215 Optional dial-in number:

Meeting ID: 418 037 5132 Passcode: 5iHJYM
Public comments via Zoom are subject to the same time limits as those in person.

The Mayor and Council Members may be reached at (760) 336-8989.

Mayor:

Mayor Pro-Tem:

Council Members:

Sonia Carter
Marty Ellett
Sylvia Marroquin
Claudia Camarena
Michael Crankshaw
Acting City Manager: Robert Sawyer
City Attorney: Elizabeth Martyn Evans
City Clerk: Norma Wyles
3:30 PM CLOSED SESSION - CONFERENCE ROOM "A":

ROLL CALL:

CLOSED SESSION PUBLIC COMMENT:

Any member of the public wishing to address the City Council on any matter appearing in the closed session may do so at this time. Unless the Mayor extends the time limit, remarks shall be limited to three (3) minutes. Additional opportunities for Public Comment will be given during and at the end of the meeting.

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CITY COUNCIL ADJOURNS INTO CLOSED SESSION:

CITY COUNCIL CLOSED SESSION:

CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54957:

Public Employee Appointment — City Manager
CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVT. CODE SECTION 54957.6:

City representative: City Council
Negotiating with: City Manager Candidate
Regarding salary and terms
CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVT. CODE SECTION 54957.6:

City representatives: Patrick Clark, consultant, Andy Heath, Interim Finance Director, Dulce Bedolla, Human Resource Director
Negotiating with all bargaining units except the Police Officer Associations and Water and Wastewater regarding salaries and fringe benefits.

NOTICE TO THE PUBLIC
This is a public meeting. If there is an item on the agenda on which you wish to be heard, you are asked to complete a blue speaker slip and submit it to the City Clerk prior to the start of the meeting. Persons wishing to address the Council are not required to identify themselves (Gov’t Code § 54953.3); however, this information assists the Mayor by ensuring that all persons wishing to address the Council are recognized and also assists the City Clerk in preparing the City Council meeting minutes. When the item is announced and your name is called by the Mayor, please step to the podium and state your name for the record. Unless the Mayor extends the time, there is a three (3) minute time limit for each public presentation. If you wish to address the Council concerning any other matter not appearing on the agenda, you may do so during the public comment portion of the agenda. However, you may not show a visual presentation without review of that material. If you do so, you will be considered out of order. * Any information provided on the “Speaker Slip” is voluntary and will be public record 6:00 OPEN SESSION
ALL TIMES ARE APPROXIMATE AND MAY VARY:

CALL TO ORDER:

ROLL CALL BY CITY CLERK:

PLEDGE OF ALLEGIANCE:

INVOCATION:

CITY ATTORNEY REPORT ON CLOSED SESSION:
(TIME MAY VARY) PUBLIC COMMENTS:

The City Council welcomes your input. At this time, members of the public may address the City Council on any matter not listed on the posted agenda. Pursuant to the Brown Act, no action will be taken on any issue brought forth under Public Comments. We ask that you please complete a “Speaker Slip” and submit it to the City Clerk prior to the start of the meeting.

Although you are not required to identify yourself (Gov’t Code §54953.3); this information on the “Speaker Slip” assists the Mayor that all persons wishing to address the Council are recognized and also assists the City Clerk in preparing the City Council meeting minutes. Unless the Mayor extends the time, there is a three (3) minute time limit for each public presentation. * Any information provided on the “Speaker Slip” is voluntary and will be public record.

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PRESENTATIONS AND ANNOUNCEMENTS BY MAYOR:

1. Proclamation — Domestic Violence Awareness Month, October 2025.

2. Proclamation - National Fire Prevention Week, October 5-11, 2025.

3. Presentation by Kurt Leptick and Chuck Fisher, regarding a Flag Project by the Kiwanis Club.

4. Presentation - Reps 4 Vets, Brendon Brown.

CONSENT AGENDA (ITEMS 5-16 ):

5. Approve Warrant Registers for the month of August 2025.

6. Approve Payroll Registers for the month of August 2025.

7. Approve Treasurer's Report for the month of August 2025.

8. Approval of the minutes of the City Council meetings held on August 28, 2025, and September 2, 2025.

9. Approval of the Valley Center Point Plaza Demolition Project Plans & Specifications.

10. Adopt Resolution No. 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO APPROVING AND AUTHORIZING THE PURCHASE OF EQUIPMENT FOR THE PUBLIC WORKS STREET MAINTENANCE DIVISION.

11. Adopt Resolution. 25- ,RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO AUTHORIZING THE ACCEPTANCE OF GRANT FUNDS FROM THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FOR THE FY2025 ALCOHOL POLICING PARTNERSHIP GRANT PROGRAM.

12. Adopt Resolution No. 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE 2025-2026

FISCAL YEAR IN ACCORDANCE WITH ARTICLE XIII B OF THE CONSTITUTION OF THE STATE OF CALIFORNIA.

13. Adopt Resolution No. 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO APPROVING AND AUTHORIZING THE PURCHASE OF A SERVICE

TRUCK FOR THE PUBLIC WORKS STREET MAINTENANCE DIVISION BASED UPON INFORMAL BIDS.

14. Adopt Resolution 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO ADOPTING A REVISED TRAVEL EXPENSE AND REIMBURSEMENT POLICY FOR ELECTED OFFICIALS.

15. Adopt Resolution No. 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO ADOPTING A REVISED CALCARD POLICY.

16. Adopt Resolution No. 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO APPROVING AND AUTHORIZING THE PURCHASE OF A FORKLIFT FOR

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THE PUBLIC WORKS WATER TREATMENT PLANT.

PUBLIC HEARINGS:

17. Public hearing for the purpose of considering a recommendation from the Planning Commission on amending the Mobile Vending Regulations.

Presentation: Angel Hernandez, Community Development Director Recommendation:

Introduction and approval of Ordinance No. 25- , AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CENTRO REPEALING CHAPTER 11, ARTICLE V; AMENDING CHAPTER 16, ARTICLE VIII; AND AMENDING CHAPTER 29 OF THE EL CENTRO CITY CODE ESTABLISHING REGULATIONS ON MOBILE VENDING, waive reading and approve as a 1st Reading and authorize City Clerk to place on the next agenda for second reading and adoption.

18. Public hearing to consider a recommendation from the Planning Commission regarding Negative Declaration 22-04 for the Vasquez Apartment Project at 1274 Pico Avenue.

Presentation: Angel Hernandez, Community Development Director Recommendation:

Adopt Resolution No. 25- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO ADOPTING NEGATIVE DECLARATION 22-04 (SCH# 2023-060637) FOR CHANGE OF ZONE 22-05, AND GENERAL PLAN AMENDMENT 22-05, A PROPOSED ZONE CHANGE FROM R1 (SINGLE-FAMILY RESIDENTIAL) TO R3 (MULTIPLE FAMILY

RESIDENTIAL), AND GENERAL PLAN AMENDMENT FOR CONSISTENCY WITH THE ZONING MAP, LOCATED AT 1274 WEST PICO AVENUE, FURTHER IDENTIFIED BY APN 044-261-010.

19. Public hearing to consider a recommendation from the Planning Commission regarding General Plan Amendment 22-05 for the Vasquez Apartment Project at 1274 Pico Avenue.

Presentation: Angel Hernandez, Community Development Director Recommendation:

Adopt Resolution No. 25- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO APPROVING GENERAL PLAN AMENDMENT 22-05 CHANGING THE

LAND USE DESIGNATION FROM LOW DENSITY RESIDENTIAL TO HIGH-MEDIUM DENSITY RESIDENTIAL FOR PROPERTY WITH APN 044-161-010 AND LOCATED AT 1274 WEST PICO AVENUE, AND DECLARING SAME TO BE THE FIRST GENERAL PLAN AMENDMENT FOR CALENDAR YEAR 2025.

20. Public hearing to consider a recommendation from the Planning Commission regarding Change of Zone 22-05 for the Vasquez Apartment Project at 1274 Pico Avenue Presentation: Angel Hernandez, Community Development Director Recommendation:

Introduction and approval of Ordinance No. 25- , AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF EL CENTRO AMENDING THE ZONING MAP OF THE CITY

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OF EL CENTRO PERTAINING TO CHANGE OF ZONE 22-05, waive reading and approve as a 1st Reading and authorize City Clerk to place on the next agenda for second reading and adoption.

NEW BUSINESS:

21. Community Sponsorship — MANA de Imperial Valley
Presentation: Robert Sawyer, Acting City Manager
Recommendation:

Discussion and any necessary action regarding the community sponsorship request from MANA de Imperial Valley.

22. Award of Bid and authorizing a contract for the Frazier Field Improvements Project.

Presentation: Adriana Nava, Community Services Director Recommendation:

Adopt Resolution No. 25- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO AWARDING THE BID AND AUTHORIZING THE EXECUTION OF A CONTRACT FOR THE FRAZIER FIELD IMPROVEMENTS PROJECT.

23. Discussion and Any Necessary Action Regarding the Approval of Change Order #2 to Pacific Hydrotech Corp. for the Wastewater Treatment Plant UV Disinfection Improvement Project and project budget authorization.

Presentation: Abraham Campos, Public Works Director/City Engineer Recommendation:

Authorize budget as requested and authorize Change Order No. 2 to Pacific Hydrotech Corporation.

24. Discussion and any necessary action regarding the cancellation of the October 7, 2025, City Council Meeting.

Presentation: Sonia Carter , Mayor
Recommendation:

Council may choose to cancel this meeting. Should any matter require immediate Council direction or action, a special meeting may be called.

LEGISLATIVE ACTION:

INFORMATIONAL ITEMS:

TASK FORCE REPORTS AND MAYOR - COUNCIL MEMBER REPORTS:

CITY MANAGER REPORT:

ADJOURNMENT:

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Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet will be available for public inspection at the Office of the City Clerk, 1275 Main Street, El Centro, California 92243, Monday-Friday during normal business hours.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the office of the City Clerk at (760) 337-4515.

Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangement to assure accessibility to this meeting.

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-295)
Item: 1.

Meeting: 9/16/2025 3:30 PM
Department: City Manager
Category: Action Item
Prepared by: Gloria Garcia , Staff
Asssistant
Department Head:

DOC ID: 2025-295
Proclamation — Domestic Violence Awareness Month, October 2025.

CITY MANAGER'S RECOMMENDATION:

N/A
FISCAL IMPACT:

N/A
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

N/A
BACKGROUND:

N/A
DISCUSSION:

N/A
CONCLUSION:

N/A
ATTACHMENTS:

None

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-296)
Item: 2.

Meeting: 9/16/2025 3:30 PM
Department: City Manager
Category: Presentation
Prepared by: Gloria Garcia , Staff
Asssistant
Department Head:

DOC ID: 2025-296
Proclamation - National Fire Prevention Week, October 5-11, 2025.

CITY MANAGER'S RECOMMENDATION:

N/A
FISCAL IMPACT:

N/A
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

N/A
BACKGROUND:

N/A
DISCUSSION:

N/A
CONCLUSION:

N/A
ATTACHMENTS:

None

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-299)
Item: 3.

Meeting: 9/16/2025 3:30 PM
Department: City Clerk
Category: Presentation
Prepared by: Norma Wyles, City Clerk
Department Head: Sonia Carter
DOC ID: 2025-299
Presentation by Kurt Leptick and Chuck Fisher, regarding a Flag Project by the Kiwanis Club.

CITY MANAGER'S RECOMMENDATION:

FISCAL IMPACT:

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

BACKGROUND:

DISCUSSION:

CONCLUSION:

ATTACHMENTS:

1. Kiwanis Flag proposal 9-2025

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El Centro Kiwanis Club Launches Flag of
Honor Program to Benefit Local Children
Flags to grace Imperial Avenue During Patriotic Holidays, Supporting Youth Initiatives Across the Community
This illustration represents the view looking south from the front of the El Centro Library El Centro, CA — The El Centro Kiwanis Club is proud to announce the launch of its Flag of Honor Program, a heartfelt community initiative designed to celebrate American pride and support the children of El Centro. Beginning this season, the club will place a brilliant display of American ags along Imperial Avenue during patriotic holidays to include Veterans’ day, President’s Day, Flag Day, Memorial Day and the Fourth of July.

The Flag of Honor Program serves a dual purpose: to inspire civic pride and unity among El Centro residents, and to raise much-needed funds for programs that enrich the lives of

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local children. With every ag that waves along Imperial Avenue, the Kiwanis Club reairms its commitment to service and the well-being of the community’s youngest members.

A Tradition of Service Meets Patriotic Spirit
For decades, Kiwanis International has been dedicated to improving the world one child and one community at a time. The El Centro chapter continues this legacy by introducing the Flag of Honor Program, inviting residents, businesses, and organizations to sponsor ags that honor the nation’s ideals and those who have served and sacriced for our freedom.

Each ag, meticulously placed, becomes a symbol of unity and gratitude—reminding everyone who passes by Imperial Avenue of the strength and resilience that dene both our country and our local community.

Flags for a Cause: How the Program Works
The El Centro Kiwanis Club’s Flag of Honor Program is simple yet profound. During key patriotic holidays, volunteers will line Imperial Avenue with hundreds of American ags, transforming the city’s main thoroughfare into a vibrant corridor of red, white, and blue.

Community members are invited to sponsor one or more ags for a modest donation.

All proceeds from ag sponsorships will be directed toward El Centro Kiwanis Club initiatives that benet children. These programs include school supply drives, scholarships, reading initiatives, youth leadership workshops, and support for local afterschool programs.
• Flag Sponsorship: Residents and businesses can participate by sponsoring a ag for a single holiday or for the entire year. Each sponsor will receive recognition in Kiwanis Club communications and may dedicate their ag to honor of a loved one, a military veteran, or a local hero.
• Visibility and Impact: The display of ags is not only a stirring visual but also a testament to the collective spirit of El Centro. It’s an opportunity for individuals and businesses to demonstrate their patriotism while making a tangible dierence in the lives of children.

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Supporting Kids, Building the Future
Every dollar raised through the Flag of Honor Program goes directly to Kiwanis Club initiatives that support youth. In recent years, the club has:
• Donated backpacks and school supplies to underprivileged students at the start of the school year
• Funded scholarships for graduating high school seniors pursuing higher education • Partnered with local libraries to promote early literacy through book donations and reading events
• Supported afterschool clubs and youth leadership development programs With the launch of the Flag of Honor Program, the El Centro Kiwanis Club aims to expand its impact, reaching even more children and providing opportunities for growth, learning, and leadership.

Community Involvement: How to Get Involved
The Flag of Honor Program is strengthened by the participation and enthusiasm of the El Centro community. There are many ways to get involved:
• Sponsor a Flag: Individuals, families, and businesses can sponsor ags for one or more holidays. Each sponsorship helps fund critical programs for local children. • Spread the Word: Encourage friends, family, and colleagues to participate or donate. The more people involved, the greater the impact on the community and its youth.

To sponsor a ag or learn more about the program, visit the El Centro Kiwanis Club’s website or contact the club directly via email or phone. Updates and stories from the program will also be shared on social media throughout the year.

Honoring Heroes, Inspiring Generations
The Flag of Honor Program is more than just a display of ags. It is a tribute to the values of service, patriotism, and community. Each uttering banner along Imperial Avenue tells a story—of a loved one remembered, a veteran honored, a child supported, and a city united in purpose.

As the American ags line Imperial Avenue, they oer a stirring reminder of the freedoms we cherish and the responsibility we share: to invest in the next generation. Through the

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generosity of sponsors and the dedication of volunteers, the El Centro Kiwanis Club ensures that every child in the community has the chance to thrive.

About the El Centro Kiwanis Club
The El Centro Kiwanis Club is a local chapter of Kiwanis International, a global organization of volunteers dedicated to improving the lives of children and families. For over 100 years, Kiwanis members have been serving communities around the world, focusing on projects that build leadership skills, promote literacy, and foster healthy development in youth.

In El Centro, the club’s eorts extend from annual holiday events to hands-on service projects in schools and neighborhoods. The Flag of Honor Program is the latest chapter in a legacy of giving back—a testament to the enduring power of community and collective action.

Contact Information
For more information about the Flag of Honor Program, sponsorship opportunities, or ways to volunteer, please contact:

El Centro Kiwanis Club on Facebook and Instagram
Phone: 760-554-9126
Stay connected with the El Centro Kiwanis Club on social media for updates on upcoming ag installations, stories from the community, and highlights of youth programs made possible through your support.

As the city comes together to honor its heritage and invest in its future, the El Centro Kiwanis Club invites everyone to join in waving the ag high—for country, for community, and, most of all, for the children.

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-305)
Item: 4.

Meeting: 9/16/2025 3:30 PM
Department: City Manager
Category: Presentation
Prepared by: Gloria Garcia , Staff
Asssistant
Department Head:

DOC ID: 2025-305
Presentation - Reps 4 Vets, Brendon Brown.

CITY MANAGER'S RECOMMENDATION:

N/A
FISCAL IMPACT:

N/A
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

N/A
BACKGROUND:

N/A
DISCUSSION:

N/A
CONCLUSION:

N/A
ATTACHMENTS:

None

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-290)
Item: 5.

Meeting: 9/16/2025 3:30 PM
Department: Finance
Category: Action Item
Prepared by: Esmeralda Nunez,
Accounting Assistant
Department Head:

DOC ID: 2025-290
Approve Warrant Registers for the month of August 2025.

CITY MANAGER'S RECOMMENDATION:

FISCAL IMPACT:

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

BACKGROUND:

DISCUSSION:

CONCLUSION:

ATTACHMENTS:

1. August 2025

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-301)
Item: 6.

Meeting: 9/16/2025 3:30 PM
Department: Finance
Category: Action Item
Prepared by: Cristhian Zambrano,
Payroll Specialist
Department Head: Elizabeth Fuchen
DOC ID: 2025-301
Approve Payroll Registers for the month of August 2025.

CITY MANAGER'S RECOMMENDATION:

Approve Payroll Registers for the Month of August 2025.

FISCAL IMPACT:

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

BACKGROUND:

DISCUSSION:

CONCLUSION:

ATTACHMENTS:

1. PAYROLL REGISTERS AUGUST 2025

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-292)
Item: 7.

Meeting: 9/16/2025 3:30 PM
Department: Finance
Category: Informational Items
Prepared by: Nora Salas, Accountant
Department Head:

DOC ID: 2025-292
Approve Treasurer's Report for the month of August 2025.

CITY MANAGER'S RECOMMENDATION:

FISCAL IMPACT:

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

BACKGROUND:

DISCUSSION:

CONCLUSION:

ATTACHMENTS:

1. Treasurer's Report August 2025

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CITY OF EL CENTRO
TREASURER’S REPORT

SCHEDULE OF INVESTMENTS
AUGUST 2025
Maturity
Date
Rate
tPcnP YTM
Market
Par Cost Value

GENERAL ACCOUNT
U.S. Savings and CD's
Subtotal
U.S. Government Obligations
Federal Home Loan Bks 3130AM2F8
Subtotal
04/29/26 $ 750,000 1.125 1.150 $ 750,000 $ 735,848
750,000 750,000 735,848
Other Investments
Cash Equiv.

Local Agency Investment Fund
Subtotal
$ 5,960,696
66,450,900

0.010 0.010

4.258 4.258
$ 5,960,696
$ 66,450,900
$ 5,960,696
$ 66,450,900
72,411,596 72,411,596 72,411,596
Subtotal 73,161,596 73.161,596 1 1 73,147,443
Bonds
$ 1,960,424
1,096,984

24.726,933

0.010

0.010

0.010

0.010 $

0.010 $

0.010 $
Series B $ - 2007 Redevelopment
2021 Series A - Library Bond Project
2023 Series A - Police Station Project
1,960,424
1,096,984
24,726,933
1,960,424
1,096,984
24,726,933
$
$ ’ ’ $
27,784,342 27,784,342 27,784,342
Total 100,945,938 100,945,938 100.931,785 i i 2 2 2 2

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CITY OF EL CENTRO

TREASURER'S REPORT

SCHEDULE OF INVESTMENTS
AUGUST 2025
Prior Fiscal
Year YTD
Same Period
This Fiscal
Month YTD
Interest Received
Other Investments 25 $ 48 $
LAIF
Total
109,585
720,125 768,457
25 $ 720,173 $ 878,042
Balance
07/31/25
Balance
Change 08/31/25
Monthly Activity
General Accounts
U.S. Savings and CD's
U.S. Corporate Obligations
U.S. Government Obligations
Cash Equiv. & Other Investments
LAIF
$
S
750,000
5,960,671
66,450,900
S 750,000
5,960,696
66,450,900
$ 25
$ 73,161,570 25 $ 73,161,596
Trustee Accounts
Series B - 2007 Redevelopment
Library 2021 Bond Project
El Centro Police 2023 Bond Project
1,953,903
1,096,984

24.639.678
27,690,565
6,522 $ 1,960,424
1,096,984
87,255 24.726.933
93,777 $ 27,784,342
Total S 100,852,135 S 100,945,938
I hereby certify that this report reflects the pooled investments of the City of El Centro and is in conformity with the Investment Policy of the City as adopted by the City Council on February 21,2001.

A copy of this Policy is available at the Office of the City Clerk. In the opinion of the undersigned, the City's expenditure requirements for the following six months, can be met from projected revenues and maturities of Investments listed herein.

Elizabeth CUi/p^A'^ Fuchen
Interim Finance Director

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Cityof El Centro
Treasurer's Report
Summary of Investments
as of 08/31/2025
Investment Unrealized
gain/loss Net increase
decrease
Market Value
end of Period
percent
of total
income
Cost/Par to-date (*)(**)
1 U.S. Savings and CD's 0%
2 U.S Corporate Obligations $ 0%
U.S. Government Obligati 750,000 (14,153) 735,848 ]%
4 Cash Equiv. «fe Other Inve: $ 5,960,696 $ 5,960,696 8% 5 LAIF $ 66,450,900 S 66,450,900 91%
Total $ 73,161,596 (14,153) $ 73,147,443 100%
(*) Investments 1 through 5
Investments are held to maturity redemption is at cost rendering no loss.

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-300)
Item: 8.

Meeting: 9/16/2025 3:30 PM
Department: City Clerk
Category: Action Item
Prepared by: Norma Wyles, City Clerk
Department Head: Norma Wyles
DOC ID: 2025-300
Approval of the minutes of the City Council meetings held on August 28, 2025, and September 2, 2025.

CITY MANAGER'S RECOMMENDATION:

Motion to approve the minutes of the City Council meetings held on August 28, 2025, and September 2, 2025.

FISCAL IMPACT:

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

BACKGROUND:

DISCUSSION:

CONCLUSION:

ATTACHMENTS:

1. 08-28-2025 Special Meeting CC Minutes

2. 09-02-2025 Regular CC Minutes

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Book 37

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SPECIAL MEETING

EL CENTRO CITY COUNCIL

CONFERENCE ROOM A
1275 MAIN STREET, EL CENTRO, CA
THURSDAY, AUGUST 28, 2025, 2:30 P.M.

OPEN SESSION
The El Centro City Council met in a special meeting on Thursday, August 28, 2025 at 2:32 p.m. in Conference Room A, El Centro City Hall, 1275 Main Street, El Centro, California.

PRESENT: Council: Crankshaw, Camarena, Ellett, Marroquin City Clerk Wyles, Acting City Manager Sawyer, City Attorney Martyn Evans ABSENT: Council (Carter arrived at 3:30 pm)
MOTION TO GO INTO CLOSED SESSION:

Moved by Marroquin, second by Camarena to go into closed session at 2:32 p.m.

CLOSED SESSION PUBLIC COMMENT:

No comments were received.

CITY COUNCIL CLOSED SESSION
CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54956.9(d)(1):

Litigation against the City v. City of El Centro et al.

CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54956.9(d)(1):

Ezequiel Espinoza v. City of El Centro
CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54956.9(d)((2):

Possible litigation against the City – 2 cases
CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54956.9(d)(4):

Possible litigation by the City
CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54957:

Public Employee Performance Evaluation – City Clerk
CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54957:

Public Employment – City Manager
CITY ATTORNEY REPORT ON CLOSED SESSION:

No reportable action.

ADJOURNMENT
With no further business to come before City Council, the meeting adjourned at 5:25 p.m.

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____________________________
Norma Wyles, City Clerk
APPROVED BY:
_________________________
Sonia Carter, Mayor

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Book 37

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REGULAR MEETING

EL CENTRO CITY COUNCIL

CITY HALL, COUNCIL CHAMBERS
1275 MAIN STREET, EL CENTRO, CA
TUESDAY, SEPTEMBER 2, 2025, 3:30 P.M.

The El Centro City Council met in a regular session on Tuesday, September 2, 2025 at 3:35 p.m. in Conference Room A, El Centro City Hall, 1275 W. Main Street, El Centro, California for the purpose of closed session.

PRESENT: Council: Crankshaw, Camarena, Carter, Ellett, Marroquin City Clerk Wyles, Acting City Manager Sawyer, City Attorney Martyn Evans ABSENT: None

CLOSED SESSION PUBLIC COMMENT
None

CITY COUNCIL CLOSED SESSION
Moved by Ellett, second by Camarena, to adjourn into closed session for:

CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54956.9(D)(4):

Possible litigation by the city.

CLOSED SESSION PURSUANT TO GOVT. CODE SECTION 54957:

Public Employment - City Manager.

ADDED CLOSED SESSION ITEM:

There was an added item to closed session as the need to take action arose after the agenda had been posted.

Moved by Carter, second by Ellett to add:

CONFERENCE WITH LABOR NEGOTIATORS – GOVT. CODE SECTION 54957.6 City representatives – Mayor and City Council
Employee: Acting City Manager
Under Negotiation: salary, compensation paid in the form of fringe benefits Motion unanimously carried.

Closed Session concluded at 5:45 p.m.

City Council recessed to 6:00 p.m.

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OPEN SESSION
The El Centro City Council met in a regular session on Tuesday, September 2, 2025, at 6:00 p.m. in Council Chambers, El Centro City Hall, 1275 Main Street, El Centro, California.

PRESENT: Council: Crankshaw, Camarena, Carter, Ellett, Marroquin City Clerk Wyles, Acting City Manager Sawyer, City Attorney Martyn Evans (Via Zoom) Pledge of Allegiance to the flag of the United States of America was led by Council Member Marroquin and Invocation was given by Mayor Pro-Tem Ellett.

CITY ATTORNEY REPORT ON CLOSED SESSION
No reportable action.

PUBLIC COMMENTS
Public comment was received from Mary Helen McCombs and an additional speaker expressed concern about the restrooms at the transfer station.

PRESENTATION AND ANNOUNCEMENTS BY MAYOR

1. Update on the transfer of El Centro Regional Medical Center to the Imperial Valley Health District, presented by Pablo Velez, CEO of El Centro Regional Medical Center.

2. Update on Bus Stop Refresh and Maintenance, presented by David Aguirre, Executive Director of the Imperial County Transportation Commission (ICTC).

3. Presentation of Retirement Plaque to Gabriel Hernandez, Building Maintenance Mechanic II, in recognition of his dedicated service.

4. Presentation of Retirement Plaque to Luis Sanchez, Equipment Operator, honoring his years of dedicated service.

CONSENT AGENDA (ITEMS 5-7)
Moved by Marroquin, second by Camarena, approving consent items # 5-7.

5. Approval of City Council meeting minutes of August 14, 2025 and August 19, 2025.

6. Approval of Plans and Specifications for the Public Works Shade Structure Improvements Project.

7. Adoption of Resolution No. 25-54, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO RESCINDING RESOLUTION NO. 97-3 AND TERMINATING A MEMORANDUM OF

UNDERSTANDING BETWEEN THE CITY OF EL CENTRO AND CALTRANS RELATED TO FUTURE IMPROVEMENTS OF STATE ROUTE 86.

AYES: Crankshaw, Camarena, Carter, Ellett, Marroquin
NOES: None
ABSENT: None
ABSTAINED: None

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PUBLIC HEARING

8. This was the scheduled date and time for a public hearing to consider approval of the 2024/2025 Consolidated Annual Performance and Evaluation Report (CAPER), approval of the CAPER itself, and authorization for staff to submit the report to the U.S. Department of Housing and Urban Development (HUD). Mayor Carter opened the public hearing and invited anyone wishing to speak to come forward.

Seeing no one come forward, Mayor Carter closed the public hearing and returned the item to the City Council for comments.

Council member Crankshaw had questions regarding how projects are selected to receive funding. Ms.

Nava explained that the projects are reviewed, ranked, and then chosen based on those evaluations.

Council member Crankshaw requested information about the housing rehabilitation programs and inquired whether funding is available. Ms. Nava explained that funding has been allocated for the program.

Council member Camarena asked if there is a waiting list for the rehabilitation program and how long it is. She was informed that the list includes over ninety customers. She also inquired about the Catholic Charities Working Hands Program and asked how many homeless individuals had been assisted and moved off the streets. Ms. Nava explained that the funding used for this purpose comes from the Permanent Local Housing Allocation (PLHA) fund, and that two individuals have been helped through this funding.

Mayor Carter noted that many residents were excited about the completion of the curb and sidewalk improvements, emphasizing that the project is beneficial for the city as it enhances infrastructure and improves overall community accessibility.

Moved by Marroquin, second by Crankshaw, adoption of Resolution No. 25-55, RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF EL CENTRO APPROVING THE CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT 2024/2025 AS PART OF THE END OF

THE YEAR REQUIREMENT REPORT PROVIDED TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNDER THE ENTITLEMENT GRANTEE PROGRAM.

AYES: Crankshaw, Camarena, Carter, Ellett, Marroquin
NOES: None
ABSENT: None
ABSTAINED: None
LEGISLATIVE ACTION:

None

TASK FORCE AND MAYOR & COUNCIL MEMBERS REPORTS
Council Members provided updates on their activities since the last City Council meeting and shared information on upcoming events.

CITY MANAGER REPORT
Reported on recent activities.

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ADJOURNMENT
With no further business, the meeting was adjourned at 7:34 __________________________
Norma Wyles, City Clerk
APPROVED BY:
________________________________
Sonia Carter, Mayor

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City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-225)
Item: 9.

Meeting: 9/16/2025 3:30 PM
Department: Public Works
Category: Informational Items
Prepared by: Catherine Gutierrez,
P.W. Analyst
Department Head: Abraham Campos
DOC ID: 2025-225
Approval of the Valley Center Point Plaza Demolition Project Plans & Specifications.

CITY MANAGER'S RECOMMENDATION:

Approve the plans and specifications for the Valley Center Point Plaza Project and authorize staff to release for public bidding.

FISCAL IMPACT:

No impact on the general fund. $3,500,000 is budgeted in Fiscal Year 2026 in Measure P funds for this project.

The engineer's estimate of probable cost for the base bid for this project is $3,232,789.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Environmental Sustainability & Infrastructure
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

NA
BACKGROUND:

In October 2017, the City completed a condition assessment report for the Valley Center Point site. The report concluded that several buildings were in such poor condition that it was not economically feasible to salvage or repair them.

In December 2019, the City prepared a Master Plan for the site, which included a Market Analysis. The plan identified construction of the new library and the demolition of all Cityowned buildings at the site, with the exception of the former Sears building. The Sears building is currently occupied by Imagine School and the now vacant temporary City library.

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On October 31, 2022, the City Council approved Task Order No. 3 under the Nicklaus OnCall Architectural Services Agreement. The task order authorizes the preparation of utility relocation plans and demolition specifications for Valley Center Point Plaza (APN 064- 470-109).

The project scope includes the demolition and site leveling of the former Mervyn’s, Miller’s Outpost, and mall shop buildings. The Sears building, occupied by Imagine School and the now vacant temporary City library, will remain. The project also includes utility improvements to provide the temporary City library with independent utility connections.

DISCUSSION:

Nicklaus, the City’s design consultant, has completed the final plans and specifications for the Valley Center Point Plaza project. With these documents finalized, staff is prepared to initiate the public bidding process.

The base project scope includes the demolition of three buildings, with the building slabs and old asphalt remaining in place. Building No. 1, which houses the former temporary City library and Imagine School, will remain.

Base Bid: Buildings to be demolished:
• Building No. 2 – 65,000 SF (Former Mervyn’s)
• Building No. 3 – 20,000 SF (Former Miller’s Outpost)
• Shops Building – 35,000 SF
Additive Bid 1 of the scope adds the removal of the old building slabs.

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Additive Bid 2 provides for the former library site to be served by independent utility connections, including sewer, water, electricity, mechanical, fire suppression, and communications. This will allow the facility to be reused in accordance with the Master Plan for future purposes such as office space.

City staff recommends that the City Council approve the plans and specifications as presented and authorize staff to release the project for public bidding.

Below is a tentative schedule for the Project:

Date Milestone
9/16/25 City Council approves project bid package
9/19/25 Project is released for public bidding
10/7/25 Mandatory Pre-Bid Meeting
10/16/25 Questions Due
10/23/25 Bids Due
12/2/25 Project awarded to the lowest responsible bidder January 2026 Notice to Proceed is issued
February 2026 Construction Begins
August 2026 Construction Complete
Attachments: (Available at City Clerk's Office)

1. Volume 1 Bid Proposal, Contract Documents and Specifications

2. Volume 2 Technical Specifications

3. Project Plans - Bid Set
CONCLUSION:

Approve the plans and specifications for the Valley Center Point Plaza Project and authorize staff to release for public bidding.

ATTACHMENTS:

1. Signed Volume 1 - Bid Proposal, Contract Documents and Specifications

2. Valley Center Point Plaza Technical Specifications

3. Valley Center Point Plaza Demolition Project Plans

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PROJECT NAME

VALLEY CENTER POINT PLAZA DEMOLITION

PROJECT

TABLE OF CONTENTS
PAGE
VOLUME 1 OF 2
NOTICE INVITING SEALED PROPOSALS (BIDS) NIB 1 – 7
BIDDING DOCUMENTS BD 1 - 24
CONTRACT DOCUMENTS CD 1 - 27
Agreement CD 2 - 14
Performance Bond CD 15-16
Payment Bond CD 17-18
Public Contract Code Section 22300 CD 19-23
Public Contract Code Section 9204 CD 24-27
GENERAL CONDITIONS GC 1 - 66
SUPPLEMENTAL GENERAL CONDITIONS SGC 1 - 3

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NIB 1

NOTICE INVITING BIDS
RECEIPT OF BIDS: Sealed Bids will be received at the office of the City Clerk, City of El Centro, OWNER of the WORK, located at 1275 Main Street, El Centro, CA 92243, until October 23, 2025, at 2:00 p.m. for the construction of the “VALLEY CENTER POINT PLAZA DEMOLITION PROJECT.”
DESCRIPTION OF WORK: The WORK includes but is not limited to:

The City is seeking a General Contractor (“Contractor”) experienced in public facility construction and demolition to perform repair utility work at the old City library and clear the remainder of the Valley Center Point site located at 1198 N. Imperial Avenue, El Centro, California 92243 to permit future development. The project consists of the demolition and disposal of 120,000 square feet of existing building structures, foundations, walls and appurtenances at the existing Valley Center Point site, site improvements and utility restoration work at the remaining old city library building as indicated in the plans and specifications.

Furnishing all labor, materials, necessary tools, equipment, supervision, appurtenances, construction permits, utility owner coordination, and all utility and transportation services required for the project.

The scope of work is more specifically described on the construction plans and in these Specifications.

SITE OF WORK: The site of the WORK is located in the City of El Centro at 1198 N. Imperial Ave., El Centro, CA 92243.

COMPLETION OF WORK: The WORK must be completed within 180 Calendar Days after the commencement date stated in the Notice to Proceed.

OPENING OF BIDS: The Bids will be publicly opened and read at 2:00 pm on October 23, 2025, at the above-mentioned office of OWNER.

OBTAINING CONTRACT DOCUMENTS: The Contract Documents are entitled “VALLEY CENTER POINT PLAZA DEMOLITION PROJECT.”
The Contract Documents are available through Planet Bids, by accessing our website (www.cityofelcentro.org) and selecting “GOVERNMENT> PUBLIC WORKS> BIDS & PROPOSALS> PROCEED TO SITE” from the drop down menu or by visiting https://pbsystem.planetbids.com/portal/41180/portal-home

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As used herein, all days are calendar days unless otherwise specified.

MANDATORY PRE-BID CONFERENCE: Bidders are required to attend a pre-bid meeting, which will be conducted by the City of El Centro CONSTRUCTION MANAGER at 10:00 A.M. on October 7, 2025. The meeting will be held at the City of El Centro, Works Conference Room located at 307 W. Brighton Ave., El Centro, CA 92243. The object of the meeting is to acquaint Bidders with the site conditions and mandatory bidding requirements and subcontractors of subcontracting and material supply opportunities. At that meeting, the City of El Centro’s Equal Opportunity Program goals and reporting procedures will be discussed.

QUESTIONS: Technical questions should be directed to the CONSTRUCTION MANAGER through the Planet Bids portal. Any responses to questions that may be asked will be provided by Addendum. No oral comments shall be of any force or effect with respect to this solicitation.

Questions must arrive at least ten (10) days prior to the bid opening to allow time for distributing answers and/or clarifications to plan holders.

CITY’S RESPONSES: Responses to questions that may be asked will be provided by written Addenda. Only responses by Addenda will be binding.

REQUIRED DOCUMENTS AT BID TIME:

The bid shall be considered incomplete and be disqualified if any of the required BIDDING DOCUMENTS in pages 9 to 24 of this solicitation are not provided as instructed.

BID SECURITY: Each Bid shall be accompanied by a certified or cashier’s check or bid bond in the amount of ten (10) percent of the total Bid price payable to the City of El Centro as a guarantee that the Bidder, if its bid is accepted, will promptly execute the Agreement. A bid shall not be considered unless one of the forms of bid security is enclosed with it.

BIDS TO REMAIN OPEN: The Bidder shall guarantee the total Bid price for a period of 90 Calendar Days from the date of Bid opening.

CONTRACTOR’S LICENSE CLASSIFICATION: In accordance with the provisions of California Law, OWNER has determined that CONTRACTOR shall possess a valid Class A or Class B California contractor’s license at the time that the Bid is submitted. Failure to possess the

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NIB 3
specified license shall render the Bid non-responsive and shall act as a bar to award of the Agreement to any Bidder not possessing said license at the time of Bid.

CALIFORNIA WAGE RATE REQUIREMENTS: In accordance with the provisions of California Labor Code sections 1770 et seq. as amended, the Director of the Department of Industrial Relations has determined the general prevailing rate of per diem wages in accordance with the standards set forth in such sections for the locality in which the WORK is to be performed.

A copy of said wage rates is on file at the office of OWNER. It shall be mandatory for CONTRACTOR to whom the WORK is awarded, and upon any Subcontractor under CONTRACTOR, to pay not less than said specified rates to all workers employed by them in the execution of the WORK.

CONTRACTOR AND SUBCONTRACTOR REGISTRATION WITH DEPARTMENT OF INDUSTRIAL RELATIONS:

Labor Code section 1771.1 provides that a contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Public Contract Code section 4104, or engage in the performance of any contract for public work, as that term is defined in Chapter 1, Part 7, Division 2 of the Labor Code, unless currently registered and qualified to perform public work pursuant to Labor Code section 1725.5. Labor Code section 1771.1 also provides that it is not a violation of that section for an unregistered contractor to submit a bid that is authorized by Business and Professions Code section 7029.1 or by Public Contract Code section 10164, provided the contractor is registered to perform public work pursuant to Labor Code section 1725.5 at the time the contract is awarded.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

RETENTION FROM PAYMENTS: CONTRACTOR may elect to receive one hundred (100) percent of payments due under the Contract Documents from time to time, without retention of any portion of the payment by OWNER, by depositing securities of equivalent value with OWNER in accordance with the provisions of section 22300 of the Public Contract Code. Such securities, if deposited by CONTRACTOR, shall be valued by OWNER, whose decision on valuation of the securities shall be final. Securities eligible for investment under this provision shall be limited to those listed in section 16430 of the Government Code, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit or any other security mutually agreed to by CONTRACTOR and OWNER.

FILING OF BID PROTESTS: By submitting a Bid, each Bidder hereby agrees and understands that the Bidder must comply with these protest procedures and exhaust all administrative remedies set forth herein prior to the initiation of any type of related legal action. With the express written

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consent of the City and Bidder, and subject to the requirements of applicable law, this protest procedure can also be used to resolve issues surrounding the City’s determination of a Bidder as not responsible. The following terms as used in this Section shall have the following meanings:
“Protest” shall mean a written objection by an interested party or affected party to (i) the requirements or specifications contained in the Notice to Bidders or any portion of documents accompanying that notice; or (ii) a proposed award recommendation protest.

A. Solicitation Phase Protest. The purpose of the solicitation is to obtain competitive Bids from Bidders. Any Bidder who has submitted a bid and who believes that a free and open competition has not taken place or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous may advise the City of its concerns by submitting a detailed Solicitation Protest Statement in accordance with the requirements set forth below in this Section A. The Protest does not replace the requirement to report irregularities in the bid documents.
(1) Contents and Requirements
A solicitation protest must be submitted to the contact named in the bid documents by personal delivery or email by close of business at least fifteen (15) calendar days prior to the Bid due date, and must contain all of the following to be considered:
a. The name, address, and telephone number of the protester; and b. The Project Name and Project Number; and
c. A detailed statement setting forth the grounds for protest, which shall include all the factual and legal documentation in support of the protest in sufficient detail to establish merits of the protest; and d. The desired resolution of the protest.

If the submitted protest does not comply with the requirements set forth herein, then it will not be considered for evaluation and will be returned to the protestor. Any grounds for protest not raised are waived. The protest may not be amended after filing. The protest is a public document.
(2) Evaluation and Determination
No hearing will be held on the protest. City’s Public Works Director, will review the protest and any supporting material and conduct an investigation of the facts.

He/she may, but need not, requires other Bidders to submit statements or arguments regarding the protest and may discuss the protest with the protestor.

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The Public Works Director or designee (“Public Works Director”)shall issue a final written decision regarding any solicitation protest to each Bidder prior to Bid opening. The written decision will cite any actions that will or will not be taken in response to the protest. That decision shall be final, and there shall be no further administrative recourse.

B. Protest of Award
(1) Contents and Requirements
Following the opening of the Bids, any unsuccessful Bidder, may protest City’s proposed award of the Contract by submitting a written protest to the Public Works Director no later than close of business on the fifth business day after issuance of the proposed award. That protest must be submitted in a timely manner, signed by the protesting Bidder, must contain all of the following to be considered:
a. The name, address, and telephone number of the protestor; and b. The Project Name and Project Number; and
c. The City action or recommendation that is being protested; d. A detailed statement setting forth every ground, reason, legal authority and facts in support of the protest, including all documents and evidence including specific references to parts of the bid documents; and e. A clear statement of the relief request
A protest that does not comply with the requirements set forth herein will be returned to the protestor. The protest shall not be amended after filing. Any grounds for protest not raised are waived. The protest is a public document.

Award Protest Statements are public documents. City will notify the affected parties when a protest has been submitted, and will provide copies of the protest to the affected parties as soon as is reasonably practical. (2) Evaluation and Determination
The affected parties may file responsive statements in support of or in opposition to the protest within three (3) business days after the receipt of the protest from the City. The Public Works Director shall review the facts and all submittals relative to the protest and shall issue a written decision setting forth the basis for such decision. The written decision will be issued to the protestor and to all affected parties.

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Unless otherwise required by law, no hearing shall be provided. In the event a hearing is conducted, the Public Works Director shall issue written notice to the protestor and affected parties identifying the date and time for the hearing, along with rules concerning the hearing.

C. Delay in Award
Execution of any proposed contract shall be delayed pending the resolution of the protest unless one or more of the following conditions is present:

1. The items or services being procured are urgently required;

2. Delivery or performance will be unduly delayed by failure to make award promptly; or

3. Failure to make prompt award will otherwise cause undue harm to the City.

D. No Limitations on Remedies
Nothing contained herein shall be construed to act as a limitation of the City’s choice of remedies or confer any right upon any interested party or affected party to a remedy.

E. Basis for Choice Remedy
In determining the appropriate remedy, the City shall consider all of the circumstances surrounding the notice of bids and/or award, including, but not limited to:

1. The seriousness of any deficiency found to exist in the contracting process;

2. The effect of the action on the competitive process;

3. Any urgency surrounding the requirement to enter into a contract; and

4. The effect that implementing the remedy will have on the City.

F. Remedies
If the City determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedures, the City, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate:

1. Prior to award, City may issue a new solicitation, make a new selection/award recommendation, or award the contract consistent with applicable statutes, regulations, policies and procedures;

2. Take no further action; or

3. Take any other action that is permitted by law to promote compliance.

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OWNER’S RIGHTS RESERVED: OWNER reserves the right to reject any or all Bids, to waive any informality in a Bid, and to make awards to the lowest responsive Bidder as it may best serve the interest of OWNER.

Date:____________________ OWNER: City of El Centro
_________________________
Norma Wyles, City Clerk
- END OF NOTICE INVITING BIDS -

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BIDDING DOCUMENTS

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INSTRUCTIONS TO BIDDERS

1. DEFINED TERMS. Terms used in these Instructions to Bidders and the Notice Inviting Bids which are defined in the General Conditions have the meanings assigned to them in the General Conditions. The term “Bidder” means one who submits a Bid directly to OWNER, as distinct from a sub-bidder, who submits a Bid to a Bidder.

2. INTERPRETATIONS AND ADDENDA.

2.1 All questions about the meaning or intent of the Contract Documents are to be directed to OWNER. Interpretations or clarifications considered necessary by OWNER in response to such questions will be issued by Addenda. Questions received less than ten (10) Days prior to the date for opening of Bids may not be answered. Only questions answered by formal written Addenda will be binding. Oral and other interpretations or clarifications will be without legal effect.

2.2 Addenda may also be issued to modify the Contract Documents as deemed advisable by OWNER or DESIGN CONSULTANT.

3. COMPETENCY OF BIDDERS. In selecting the lowest responsive Bidder, consideration will be given not only to the financial standing but also to the general competency of the Bidder for the performance of the WORK covered by the Bid. Bidders must possess a valid California contractor’s license applicable to the type of work bid upon at the time of opening Bids.

4. EL CENTRO BUSINESS LICENSE. All Bidders and their Subcontractors not already having a business license from the City of El Centro will be required to secure the appropriate license from the City of El Centro before the Agreement can be executed.

5. DISQUALIFICATION OF BIDDERS. More than one (1) Bid from an individual, firm, partnership, corporation or association under the same or different names will not be considered. If OWNER believes that any Bidder is interested in more than one (1) Bid for the WORK contemplated, all Bids in which such Bidder is interested will be rejected. If OWNER believes that collusion exists among the Bidders, all Bids will be rejected. A party who has quoted prices to a Bidder is not hereby disqualified from quoting prices to other Bidders, or from submitting a Bid directly for the WORK.

6. BIDDER’S EXAMINATION OF CONTRACT DOCUMENTS AND SITE

6.1 It is the responsibility of each Bidder before submitting a Bid:
(a) To examine thoroughly the Contract Documents and other related data identified in the Bidding Documents (including “technical data” referred to below); (b) To visit the site to become familiar with and satisfy Bidder as to the general and local conditions that may affect cost, progress or performance of the WORK; (c) To consider Federal, State and local Laws and Regulations that may affect cost, progress or performance of the WORK;

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(d) To study and carefully correlate the Bidder’s knowledge and observations with the Contract Documents and other related data; and
(e) To notify CONSTRUCTION MANAGER of all conflicts, errors, ambiguities or discrepancies in or between the Contract Documents and such other related data.

6.2 Reference is made to the Supplementary General Conditions for identification of:
(a) Those reports of explorations and tests of subsurface conditions at or contiguous to the site which have been utilized by Owner in the preparation of the Contract Documents.

The Bidder may rely upon the accuracy of the technical data contained in such reports, however, the interpretation of such technical data, including any interpolation or extrapolation thereof, together with non-technical data, interpretations and opinions contained therein or the completeness thereof is the responsibility of the Bidder. (b) Those drawings of physical conditions in or relating to existing surface and subsurface conditions (except Underground Utilities) which are at or contiguous to the site that have been utilized by OWNER in the preparation of the Contract Documents. The Bidder may rely upon the accuracy of the technical data contained in such drawings, however, the interpretation of such technical data, including any interpolation or extrapolation thereof, together with nontechnical data, interpretations and opinions contained in such drawings or the completeness thereof is the responsibility of the Bidder.

Subsurface conditions, including but not limited to groundwater, may have changed significantly between the completion of the soils investigation by the geotechnical engineer and start of construction. Subsurface conditions, including but not limited to groundwater, may change significantly during construction.

6.3 Copies of such reports and drawings will be made available by OWNER to any Bidder on request if said reports and drawings are not bound herein. Those reports and drawings are not part of the Contract Documents, but the technical data contained therein upon which the Bidder is entitled to rely.

6.4 Information and data reflected in the Contract Documents with respect to Underground Utilities at or contiguous to the site is based upon information and data furnished to OWNER by the owners of such Underground Utilities or others, and OWNER does not assume responsibility for the accuracy or completeness thereof unless it is expressly provided otherwise in the Supplementary General Conditions or the section entitled “Protection and Restoration of Existing Facilities” of the General Requirements.

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6.5 Provisions concerning responsibilities for the adequacy of data furnished to prospective Bidders on subsurface conditions, Underground Utilities and other physical conditions, and possible changes in the Contract Documents due to differing conditions appear in Paragraphs 4.2, 4.3, and 4.4 of the General Conditions.

6.6 Before submitting a Bid, each Bidder will, at Bidder’s own expense, make or obtain any additional examinations, investigations, explorations, tests and studies and obtain any additional information and data which pertain to the physical conditions (surface, subsurface and Underground Utilities) at or contiguous to the site or otherwise which may affect cost, progress or performance of the WORK or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Bidder and Safety precautions and programs incident thereto which the Bidder deems necessary to determine its Bid for performing the WORK in accordance with the time, price and other terms and conditions of the Contract Documents. Interference with existing facility operations will not be permitted.

6.7 On request in advance, OWNER will provide each Bidder access to the site to conduct such examinations, investigations, explorations, tests and studies as each Bidder deems necessary for submission of a Bid. Bidder shall fill all holes and shall clean up and restore the site to its former condition upon completion of such examinations, investigations, explorations, tests and studies.

6.8 The lands upon which the WORK is to be performed, rights-of-way and easements for access thereto and other lands designated for use by CONTRACTOR in performing the WORK are identified in the Contract Documents. All additional lands and access thereto required for temporary construction facilities or storage of materials and equipment are to be provided by CONTRACTOR. Easements for permanent structures or permanent changes in existing structures are to be obtained and paid for by OWNER unless otherwise provided in the Contract Documents.

6.9 The submission of a Bid will constitute an incontrovertible representation by the Bidder that the Bidder has complied with every requirement of this Paragraph 6, “Bidder’s Examination of Contract Documents and Site” herein, that without exception the Bid is premised upon performing the WORK required by the Contract Documents and such means, methods, techniques, sequences or procedures of construction (if any) as may be indicated in or required by the Contract Documents, that Bidder has given CONSTRUCTION MANAGER written notice of all conflicts, errors, ambiguities and discrepancies in the Contract Documents and the written resolution thereof by CONSTRUCTION MANAGER is acceptable to Bidder and the Contract Documents are sufficient in scope and detail to indicate and convey understanding of all terms and conditions for performance of the WORK.

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7. BID FORM.

7.1 The Bid shall be made on the Bid schedule bound herein and the pages may be removed from the bound volume. The envelope enclosing the sealed Bids shall be plainly marked in the upper left-hand corner with the name and address of the Bidder and shall bear the words “BID FOR” followed by “VALLEY CENTER POINT PLAZA DEMOLITION PROJECT,” El Centro, CA, 92243, and the date and hour of opening of Bids. The Bid security shall be enclosed in the same envelope with the Bid.

7.2 All blanks on the Bid form must be completed in ink.

7.3 Bids by corporations must be executed in the corporate name by the president and a vice-president. Bids signed by other corporate officer or the project manager shall be accompanied by the certificate of authority to sign, attested by the secretary or assistant secretary, and with the corporate seal affixed. The corporate address and state of incorporation must appear below the signature.

7.4 Bids by partnerships must be executed in the partnership name and be signed by a managing partner, accompanied by evidence of authority to sign and his/her title must appear under the signature and the official address of the partnership must appear below the signature.

7.5 All names must be printed below the signature.

7.6 The Bid shall contain an acknowledgement of receipt of all Addenda, the numbers of which shall be filled in on the Bid form. Failure to acknowledge Addenda shall render the Bid non-responsive and shall be cause for its rejection.

7.7 The address to which communications regarding the Bid are to be directed must be shown.

7.8 All Bidders must provide evidence of authority to conduct business in California to the extent required by law.

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8. QUANTITIES OF WORK. The quantities of work or material stated in unit price items of the Schedule of Values are supplied only to give an indication of the general scope of the WORK; OWNER does not expressly or by implication agree that the actual amount of work or material will correspond therewith, and reserves the right after award to increase or decrease the amount of any unit price item of the WORK in accordance with Article 10 of the General Conditions, to delete any Bid item in its entirety, or to add additional Bid items up to and including an aggregate total amount not to exceed twenty-five (25) percent of the Contract Price.

9. SUBSTITUTE OR “OR EQUAL” ITEMS. Whenever materials or equipment are specified or described in the Contract Documents by using the name of a proprietary item or the name of a particular supplier and the name is followed by the words “or equal,” the Bidder may write the name of a substitute supplier (which the Bidder considers as an “or equal”) in the Proposed Substitute Equipment/Material Supplier List in the Bid form. These substitute suppliers will only be considered after award of the Agreement. The procedure for the submittal of substitute or “or equal” products is specified in section 6.7 of the General Conditions.

10. SUBMISSION OF BIDS. The Bid shall be delivered by the time and to the place set forth in the Notice Inviting Bids. It is the Bidder’s sole responsibility to see that its Bid is received in proper time. It is the Bidders responsibility to point out any errors or discrepancies in the bid documents.

11. BID SECURITY, BONDS AND INSURANCE. Each Bid shall be accompanied by a certified or cashier’s check or approved Bid bond in the amount stated in the Notice Inviting Bids. Said check or bond shall be made payable to the City of El Centro and shall be given as a guarantee that the Bidder, if awarded the Agreement, will enter into an Agreement with OWNER, and will furnish the necessary insurance certificates, payment bond and performance bond; each of said Bonds to be in the amount stated in the Supplementary General Conditions. In case of refusal or failure to enter into said Agreement, the check or Bid bond, as the case may be, shall be forfeited to OWNER. If the Bidder elects to furnish a Bid bond as its Bid security, the Bidder shall use the Bid bond form bound herein, or one conforming substantially to it in form.

12. DISCREPANCIES IN BIDS. In the event of a discrepancy between words and numbers in the Bid, the words shall govern. In the event there are unit price Bid items in the Schedule of Values and the amount indicated for a unit price Bid item does not equal the product of the unit price and quantity, the unit price shall govern and the amount will be corrected accordingly, and the Bidder shall be bound by said correction. In the event there is more than one (1) Bid item in the Schedule of Values and the total indicated for the schedule does not agree with the sum of the prices bid on the individual items, the prices bid on the individual items shall govern and the total for the schedule will be corrected accordingly, and the Bidder shall be bound by said correction.

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13. MODIFICATIONS AND UNAUTHORIZED ALTERNATIVE BIDS. Unauthorized conditions, limitations or provisos attached to the Bid will render it informal and may cause its rejection as being non-responsive. The completed Bid forms shall be without interlineations, alterations or erasures in the printed text. Alternative Bids will not be considered unless called for. Oral, telegraphic or telephonic Bids or modifications will not be considered.

14. WITHDRAWAL OF BID. The Bid may be withdrawn by the Bidder by means of a written request, signed by the Bidder or its properly authorized representative. Such written request must be delivered to the place stipulated in the Notice Inviting Bids for receipt of Bids prior to the scheduled closing time for receipt of Bids or the bid security may not be returned.

15. BID RESULTS. To obtain bid results, provide a self-addressed, stamped envelope, referencing “VALLEY CENTER POINT PLAZA DEMOLITION PROJECT.” Bid tabulation will be mailed to you after verification of extensions. Bid results will not be given out over the telephone. Bid results may be posted on City’s website.

16. AWARD OF CONTRACT. Award of a contract, if it be awarded, will be on the basis of the Bid proposal estimated quantities and will be made to the lowest responsive Bidder whose Bid complies with all the requirements prescribed. Unless otherwise specified, any such award will be made within the period stated in the Notice Inviting Bids that the Bids are to remain open. Unless otherwise indicated, a single award will be made for all the Bid items in an individual Bid schedule. The lowest Bid shall be the lowest bid price on the base contract without consideration of the prices on the additive or deductive items.

17. RETURN OF BID SECURITY. Within fourteen (14) working Days after award of the Agreement, unless otherwise provided, OWNER will return the Bid securities accompanying such of the Bids as are not considered in making the award. All other Bid securities will be held until the Agreement has been finally executed. They will then be returned to the respective Bidders whose Bids they accompany.

18. EXECUTION OF AGREEMENT. The apparent low Bidder will be required to execute a written Agreement with OWNER on the form of agreement provided, shall secure all insurance and shall furnish all certificates and Bonds required by the Contract Documents within fourteen (14) calendar Days after receipt of notification that the Bidder is the apparent low Bidder. Failure or refusal to enter into an Agreement as herein provided or to conform to any of the stipulated requirements in connection therewith shall be considered non-responsive and result in the forfeiture of the Bid security. If the lowest responsive Bidder refuses or fails to execute the Agreement, OWNER may proceed to the second lowest responsive Bidder. If the second lowest responsive Bidder refuses or fails to execute the Agreement, OWNER may proceed to the third lowest responsive Bidder. On the failure or refusal of such second or third lowest Bidder to execute the Agreement, each such Bidder’s Bid securities shall be likewise forfeited to OWNER.

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19. LIQUIDATED DAMAGES. Provisions for liquidated damages, if any, are set forth in the Agreement.

20. WORKERS’ COMPENSATION REQUIREMENT. The Bidder should be aware that in accordance with section 3700 of the California Labor Code it will, if awarded the Agreement, be required to secure the payment of compensation to its employees and execute the Workers’ Compensation Certification in the form contained in these Contract Documents.
- END OF INSTRUCTIONS TO BIDDERS -

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SECTION 00300A

BID FORMS
BID TO: CITY OF EL CENTRO

1. The undersigned Bidder proposes and agrees, if this Bid is accepted, to enter into an Agreement with OWNER in the form included in the Contract Documents (as defined in Article 6 of the Agreement) to perform the WORK as specified or indicated in said Contract Documents entitled “VALLEY CENTER POINT PLAZA DEMOLITION PROJECT.”

2. Bidder accepts all of the terms and conditions of the Contract Documents, including without limitation those in the Notice Inviting Bids and Instructions to Bidders, dealing with the disposition of the Bid security.

3. This Bid will remain open for the period stated in the Notice Inviting Bids unless otherwise required by law. Bidder will enter into an Agreement within the time and in the manner required in the “Notice Inviting Bids” and the “Instructions to Bidders,” and will furnish the insurance certificates, Payment Bond and Performance Bond required by the Contract Documents.

4. Bidder has examined copies of all the Contract Documents including the following Addenda (receipt of all of which is hereby acknowledged):

Number ______ ______ ______ ______ ______ ______
Date ______ ______ ______ ______ ______ ______

5. Bidder has familiarized itself with the nature and extent of the Contract Documents, WORK, site, locality where WORK is to be performed, the legal requirements (Federal, State and local laws, ordinances, rules and regulations) and the conditions affecting cost, progress or performance of the WORK and has made such independent investigations as Bidder deems necessary.

To all the foregoing, and including all Bid schedule(s) and information required of Bidder contained in this Bid form, said Bidder further agrees to complete the WORK required under the Contract Documents within the Contract Time set forth in said Contract Documents, and to accept in full payment therefore the Contract Price based on the total Bid price(s) named in the aforementioned Bid schedule(s).

Dated: Bidder:

By:
(Signature)
Title:
8

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BID SCHEDULE - PRICES
Pursuant to and in compliance with the Invitation for Bids and other Contract Documents relating to the proposal for the construction of

VALLEY CENTER POINT PLAZA DEMOLITION PROJECT
all in accordance with the Drawings and Project Specifications the undersigned Bidder, having familiarized himself with the terms of the Agreement, the local conditions affecting the performance of the Agreement and the cost of the WORK at the place the WORK is to be done; and with the Drawings, Project Specifications and other Contract Documents, hereby stipulated; CONTRACTOR agrees to complete the Agreement, including all of its component parts and everything required to be performed, and to provide and furnish any and all labor, materials, equipment, tools, expendable supplies, and all utility and transportation services necessary to perform the Agreement, and complete in a workmanlike manner all of the WORK required in connection with the Agreement, all in strict conformance with the Drawings and Specifications for the following prices and sum.

The following Bid Schedule of estimated quantities is included for convenience of bidding and a basis for comparison of Bids only, and CITY does not, expressly, or by implication, agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the WORK, or to delete portions of the WORK, as may be deemed necessary or advisable by CITY.

All Bidders are REQUIRED to use unit prices where indicated and to complete this schedule.

All items shall be complete and in place per Plans and these Bid and Contract Documents.

Note: Payment for all work (labor, material, equipment, etc.) required for the construction and installation of the improvement as shown on the plans which is not specifically identified below in the Bid Schedule shall be considered as included in the CONTRACTOR’s price, as itemized below, for the various items of work for which the work is required, and no additional compensation shall be made therefor.

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PROPOSAL BID FORM

BASE BID SCHEDULE
Pursuant to and in compliance with the Notice Inviting Bids and the other documents relating thereto, the undersigned Bidder, having familiarized himself/herself with the terms of the Contract and the Contract Documents, the local conditions affecting the performance of the Contract and the cost of the work at the place where the work is to be done, hereby proposes and agrees to perform within the time stipulated, the Work of the Contract, including all of its component parts, and the furnishing of all materials and equipment required to be incorporated in the form a permanent part of the work; the furnishing of tools, equipment, supplies, transportation, utilities, facilities, labor, superintendence and services required to perform and complete the work; bonds, insurance and submittals; and including the assumption of all obligations, duties and responsibilities necessary to the successful completion of the Contract, including its acceptance by the OWNER, for the following Project:

PROJECT NAME: VALLEY CENTER POINT PLAZA DEMOLITION PROJECT The total lump sum price bid shall be the total price to fully deliver a complete and in place project in accordance with the contract documents.

BID PROPOSAL SUMMARY*
TOTAL PRICE FOR BASE BID ITEMS (in figures): _________________________________ TOTAL PRICE FOR BASE BID ITEMS (in words): _________________________________ *NOTE: The apparent first, second and third lowest place bidders must submit a Schedule of Values to the OWNER within twenty-four (24) hours of the bid opening. The Schedule of Values must be completed and furnished in the format shown in these Specifications. Unit prices shall prevail over extended total and grand total prices, and written words shall prevail over written figures. Late submittal of the Schedule of Values will not be accepted and will disqualify the BIDDER. The awarded CONTRACTOR will be required to provide additional information regarding the various Bid Items of Work as required in Volume 2 of these Specifications.

Bidder’s Initials ____________

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PROPOSAL BID FORM
TO THE DIRECTOR OF PUBLIC WORKS OF THE CITY OF EL CENTRO:

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.

BASE BID
(SCHEDULE A)
Demolition and Site Clearing (not including removal of building slab) Item Description Unit Amount Unit
Price Total Price
1 Remove & dispose of existing building structure
(above the concrete slab) LS 1
2 Remove & properly dispose of existing concrete
sidewalk. SF 9,581
3 Remove & properly dispose of existing CMU wall LF 84
4 Remove & properly dispose of existing concrete
vertical curb & gutter. LF 85
5 Remove & properly dispose of existing concrete
slab. SF 6,602
6 Remove & properly dispose of existing light pole,
base, & foundation. Infill & compact area to 90%.

New 3” AC pavement to match existing grade.

EA 7
7 Cap-off & abandon existing sewer line at sewer
main. EA 5
8 Cap-off & abandon existing sewer line at water
main. EA 5
9 Sawcut existing concrete. LF 20
10 Remove & properly dispose of existing asphalt
pavement. SF 12,687
11 Remove & properly dispose of existing fire pump
room & equipment. LS 1
12 1’ sawcut, remove & properly dispose of existing
AC pavement. LF 910
13 Remove & replace AC pavement as needed to capoff existing water/sewer service line. SF 226 14 Remove & replace AC pavement as needed for
construction of new water & fire services. SF 233

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15 Cap-off and abandon existing water line at water
main. EA 1
16 Division 01 – General Requirements LS 1
17 Division 01 – Mobilization/Demobilization LS 1
18 Division 01 - Material Testing LS 1
19 Division 01 - Special Inspections LS 1
20 Division 02 – Removal and Disposal of Asbestos
Containing Material LS 1
21 Division 03 - Cast-in-Place Concrete LS 1
22 Division 04 - Unit Masonry LS 1
23 Division 09 – Cement Plastering LS 1
Total Base Bid is: $__________________________
ADDITIVE BID #1
(SCHEDULE B)
Building Slab Demolition and Pad Preparation
Item Description Unit Amount Unit
Price Total Price
1 Remove & dispose of existing building foundation
& appurtenances. LS 1
2 Scarify 6” of the bottom of excavation & compact
to 90%. Backfill in 12” loose lifts & compact to
90%. Fill soils should possess an expansion index
of less than 30.

LS 1
3 Division 01 – General Requirements LS 1
4 Division 01 – Mobilization/Demobilization LS 1
5 Division 01 - Material Testing LS 1
Total Additive Bid #1 is: $__________________________

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ADDITIVE BID #2
(SCHEDULE C)
Tenant Space Improvements
Item Description Unit Amount Unit
Price Total Price
1 Cap-off existing fire line. EA 1
2 Remove & replace existing sidewalk, AC
pavement, & excavate as needed for new
construction. Backfill & compacted to 90%.

SF 703
3 Remove & replace AC pavement as needed to capoff existing water/sewer service line. SF 86 4 Existing sewer lateral to be removed & replaced. EA 1 5 Remove & replace AC pavement as needed for
construction of new in/line water valve. SF 25
6 Connect new 4” fire service line to existing 10”
water line with 10”x6” tapping sleeve, thrust
block, 6” valve.

LS 1
7 New 4” C-900 (DR-14) Class 200 fire service line. LF 43 8 Connect fire hydrant to water main. LS 1
9 New 4” in-line valve with valve box & cover. EA 1
10 New 4” sewer lateral. LF 90
11 New 10” in-line valve with valve box & cover. EA 1
12 New 4” backflow preventor. EA 1
13 New 2-1/2” water line. LF 152
14 New 3” backflow preventor. EA 1
15 Connect new 2-1/2” water service to existing water
main. EA 1
16 Division 01 - General Requirements LS 1
17 Division 02 – Removal and Disposal of Asbestos
Containing Material LS 1
18 Division 01 – General Conditions LS 1
19 Division 01 – Mobilization/Demobilization LS 1
20 Division 01 - Survey/Construction Staking LS 1
21 Division 01 - Material Testing LS 1
22 Division 01 - Special Inspections LS 1
23 Division 02 - Demolition LS 1
24 Division 03 - Cast-in-Place Concrete LS 1
25 Division 04 - Unit Masonry LS 1
26 Division 07 – Joint Sealants LS 1
27 Division 08 - Hollow Metal Doors and Frames LS 1
28 Division 08 - Flush Wood Doors LS 1
29 Division 08 - Door Hardware LS 1
30 Division 09 - Gypsum Board Assemblies LS 1

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31 Division 09 - Non-Structural Metal Framing LS 1
32 Division 09 - Tiling LS 1
33 Division 09 - Acoustical Ceilings LS 1
34 Division 09 - Resilient Flooring LS 1
35 Division 09 - Fluid Applied Flooring LS 1
36 Division 09 - Tile Carpeting LS 1
37 Division 09 - Painting LS 1
38 Division 10 - Signage LS 1
39 Division 21 - Fire Suppression LS 1
40 Division 22 - Plumbing LS 1
41 Division 26 - Electrical LS 1
42 Division 28 – Electric Safety and Security LS 1
Total Additive Bid #2 is: $__________________________
_____________________________________________________________________________ Re-enter base bid amount below for low bid determination:

BASE BID (Schedule A) is:
$_____________________ (Amount of Base Bid written numerically as dollars and cents, in US dollars)
$ _____________________________________________________________________________ (Amount of Base Bid written in words as dollars and cents, in US dollars) NOTE: BASE BID WILL BE USED TO DETERMINE LOW BIDDER

END OF PROPOSAL BID FORM

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LIST OF SUBCONTRACTORS
The Bidder shall list below the name and the location of the place of business of each Subcontractor who will perform work or labor or render service to CONTRACTOR in or about the construction of the WORK, or a Subcontractor licensed by the State who, under subcontract to CONTRACTOR, specially fabricates and installs a portion of the WORK according to detailed Drawings contained in the plans and specifications, in an amount in excess of one-half (0.5) of one (1.0) percent of CONTRACTOR’s total Bid. The Bidder shall also list below the portion of the WORK which will be done by each Subcontractor under this contract.

CONTRACTOR shall list only one (1) Subcontractor for each portion of the WORK. If Bidder does NOT intend to use ANY subcontractors, state “NONE” in the first block.

Substitutions of subcontractors listed will not be permitted unless approved by the City of El Centro.

The Bidder’s attention is directed to Paragraph 6.5.3 entitled “Subcontract Limitations” of the General Conditions which sets forth the percent of the WORK to be performed with the Bidders’ own forces. Failure to comply with this requirement will render the Bid non-responsive and may cause its rejection.

PORTION OF WORK NAME OF

SUBCONTRACTOR

CONTRACTOR LICENSE
& DIR REGISTRATION
NUMBER

PLACE OF BUSINESS
ADDRESS/TELEPHONE No.

USE ADDITIONAL FORMS AS NECESSARY

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BD-17

GENERAL INFORMATION
BIDDER’S GENERAL INFORMATION:

The Bidder shall furnish the information requested below. Additional sheets shall be attached as required. Failure to complete Item Nos. 1 through 3 will cause the Bid to be non-responsive and shall cause its rejection. In any event, no award will be made until all of the Bidder’s general information (i.e., items 1 through 3, inclusive) is delivered to OWNER.

INFORMATION TO BE PROVIDED BY ALL BIDDERS WITH BID SUBMITTAL:
(1) CONTRACTOR’s name and address:
(2) CONTRACTOR’s telephone number: FAX number:
(3) CONTRACTOR’s license: Primary classification
California State License No. and Expiration Date
Registration No. __________________-
Supplemental classifications held, if any:

Name of Licensee, if different from (1) above:

To be considered for award, CONTRACTOR shall have met all requirements established by OWNER of the Project.
- END GENERAL INFORMATION –

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BD-18

NONCOLLUSION DECLARATION

TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID
The undersigned declares:

I am the __________________ of ______________________, the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham.

The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________ [date], at ______________________ [city], ________________________ [state]. - END NONCOLLUSION DECLARATION –

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BID BOND

KNOW ALL MEN BY THESE PRESENTS,
That _____________________________ as Principal, and ____________________as Surety, are held and firmly bound unto the City of El Centro, hereinafter called “OWNER,” in the sum of __________________________ dollars, (_______________) (not less than ten (10) percent of the total amount of the Bid) 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.

WHEREAS, said Principal has submitted a Bid to said OWNER to perform the WORK required under the Bid schedule(s) of OWNER’s Contract Documents entitled:

NOW THEREFORE, if said Principal is awarded a contract by said OWNER and, within the time and in the manner required in the Notice Inviting Bids and the Instructions to Bidders enters into a written Agreement on the form of agreement bound with said Contract Documents, furnishes the required certificates of insurance and furnishes the required Performance Bond and Payment Bond, then this obligation shall be null and void, otherwise it shall remain in full force and effect. In the event suit is brought upon this Bond by said OWNER and OWNER prevails, said Surety shall pay all costs incurred by said OWNER in such suit, including reasonable attorneys’ fee to be fixed by the court and actual costs.

SIGNED AND SEALED, this day of , 20
(SEAL) (SEAL)
(Principal) (Surety)
By: By:
(Signature) (Signature)
(SEAL AND NOTARIAL ACKNOWLEDGEMENT OF SURETY)
- END BID BOND –

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CORPORATE CERTIFICATION
OR

PARTNERSHIP INFORMATION
Name of Corporation or Partnership________________________________________________ State of Incorporation___________________________________________________________ List names and addresses of each partner, or titles, names and business addresses of President, Secretary and Treasurer.
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Date_____________________________ Contractor__________________________ Signature_________________________ Title________________________________ ATTEST:
__________________________________
Signature by
__________________________________
Title
- END OF CORPORATE CERTIFICATION OR PARTNERSHIP INFORMATION -

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DRUG/ALCOHOL TESTING REQUIREMENTS
CONTRACTOR shall execute the following form as required by the Federal Drug and Alcohol, Section 49 CFR Part 382.

I agree to comply with the provisions of Federal Omnibus Transportation Employee Testing Act of 1991, and that I will administer a program of alcohol and drug testing of all commercial vehicle operators, as required by Federal Regulations.

CONTRACTOR certifies compliance with the City of El Centro’s Drug and Alcohol Free Workplace Policy as a condition of the State Drug-Free Workplace Act of 1990 (Government Code sections 8350 et seq.) and the Federal Drug Free Workplace Act of 1988 (41 U.S.C.A. Sections 701 et seq.) In addition, CONTRACTOR agrees to submit a copy of its own drug free workplace policy.

Dated_____________________________
________________________________________
CONTRACTOR’s Name
_________________________________________
CONTRACTOR’s Signature
_________________________________________
Title
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WORKERS’ COMPENSATION CERTIFICATE
(AS REQUIRED BY SECTION 1861

OF THE CALIFORNIA LABOR CODE)
I am aware of the provisions of section 3700 of the Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the WORK of this Agreement.

CONTRACTOR:

By:

Title:
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SITE VISIT CERTIFICATE
THIS IS TO CERTIFY that:

I, ___________________________________________________(name of bidder or his representative) of the _____________________________________________________ (name of construction firm) visited the site in connection with the Bid for the ______________________________________________________________ (name of the Project.)
Having examined the bid documents, I certify that I have acquainted with the nature, geographical and exact location of the works; the general conditions of execution; the neighboring buildings and other constraints that might affect the construction methods; the obligation not to obstruct the traffic where requested, or the flow of any water; the physical conditions specific to the construction sites; the climatic conditions; local conditions; means of communication and transport; the possibility of supplying water, electricity and fuel; the availability of labor sufficient in number and quantity; all constraints and obligations resulting from social, tax and customs legislation; and all conditions and circumstances which might influence the execution or price of the works.

I further certify that I am satisfied with the description of the works and the Project Engineer’s explanations and that I understand perfectly the works to be undertaken as specified and implied in the execution of the Contract. ______________________________________________
(Name and Signature of Bidder or his Representative)
Date : ______________________
Note 1: This form shall be completed at the time of the visit to the site where the works are to be carried out. - END OF SITE VISIT CERTIFICATE –

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CONTRACTOR’S CERTIFICATION OF QUALIFICATION

FOR LICENSE CLASSIFICATION
After award of the contract, the Contractor, whether an individual, co-partnership, limited partnership, corporation, or any other combination or organization, shall execute the following form:

1. If an individual, I hereby certify that I am, or my responsible managing employee ________________________ (insert name) is, qualified for the license classification called for in these contract documents.

2. If a co-partnership or limited partnership, the general partner hereby certifies that the general partner _______________________________ (insert name), or responsible managing employee __________________________________ (insert name), is qualified for the license classification called for in these contract documents.

3. If a corporation, or any other combination or organization, the responsible managing officer _______________________________ (insert name), or a responsible managing employee ________________________________ (insert name), is qualified for the license classification called for in these contract documents.

If the individual who qualifies the Contractor for the license classification called for in these contract documents changes during the progress of the work, then Contractor shall, within seven (7) days of any such change, notify the Director of Public Works in writing of such change, including the name, license number and status of the individual.

For the purpose of this Certification, a responsible managing employee shall mean an individual who is a bona fide employee of the Contractor and is actively engaged in the classification of work for which that individual is the qualifying person on behalf of the Contractor under California law.

DATED:____________________ CONTRACTOR:___________________________________ SIGNATURE:_____________________________ TITLE:______________________________ ATTEST:

SIGNATURE BY:___________________________________________ TITLE:__________________________________________________ - END OF CONTRACTOR’S CERTIFICATION OF QUALIFICATION –
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CONTRACT DOCUMENTS

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CITY OF EL CENTRO

VALLEY CENTER POINT PLAZA DEMOLITION PROJECT

CONSTRUCTION SERVICES AGREEMENT
This CONSTRUCTION SERVICES AGREEMENT (“Agreement”), is made and effective as of the last signature date set forth below “Effective Date” , by and between the City of El Centro, a municipal corporation ("CITY"), and , a [sole proprietorship, partnership, limited liability partnership, corporation] ("CONTRACTOR"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

I. SCOPE OF WORK
The CONTRACTOR shall perform within the time set forth in Article 2 of this Agreement and shall furnish all labor, materials, equipment, tools, utility services, and transportation and perform and complete all work required in connection with the following:

The City is seeking a General Contractor (“Contractor”) experienced in public facility construction and demolition to perform repair utility work at the old city library and clear the remainder of the Valley Center Point site located at 1198 N. Imperial Avenue, El Centro, California 92243 to permit for future development. The project consists of the demolition and disposal of 120,000 square feet of existing building structures, foundations, walls and appurtenances at the existing Valley Center Point site, site improvements and utility restoration work at the remaining old city library building as indicated in the plans and specifications. Furnishing all labor, materials, necessary tools, equipment, supervision, appurtenances, construction permits, utility owner coordination, and all utility and transportation services required for the project.

The scope of work is more specifically described on the construction plans and in these Specifications.

By entering into this Agreement, CONTRACTOR acknowledges that there may be other contractors on the site whose work will be coordinated with that of its own.

CONTRACTOR expressly warrants and agrees that it will cooperate with other contractors and will do nothing to delay, hinder, or interfere with the work of other separate contractors, the CITY, the Construction Manager, the Architect, or utilities. CONTRACTOR also expressly agrees that, in the event its work is hindered, delayed, interfered with, or otherwise affected by a separate contractor, its sole remedy will be a direct action against the separate contractor. To the extent allowed by law, the CONTRACTOR will have no remedy, and hereby expressly waives any remedy against the CITY, the Construction Manager, or the Architect on account of delay, hindrance, interference or other events caused by a separate contractor.

II. TIME FOR PROJECT COMPLETION
All of CONTRACTOR’s work on the Project shall be completed within 180 Calendar

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Days. All work shall commence within ten (10) Calendar Days after receiving a written Notice to Proceed from the CITY or Construction Manager, if a Construction Manager is employed by CITY on the Project. CONTRACTOR shall refer to the invitations for bids, and Project Plans and Specifications, all of which, as set forth below, are incorporated herein by reference, for contractual obligations regarding individual activity durations. The aggregate sum total work of all individual Prime Contractors to the CITY comprises the entire “Project” and shall be commenced and completed in conformance with the Project Construction Schedule. The entire Project shall be completed within 180 “Calendar” days as defined by Article 1 – Definitions of the General Conditions.

III. THE CONTRACT SUM
The CITY shall pay to the CONTRACTOR for the performance of this Agreement, subject to any additions and deductions provided in the Project documents, the sum of dollars and cents ($ ).

IV. PROGRESS PAYMENTS
Based upon Applications for Payment submitted to the CONSTRUCTION MANAGER by the CONTRACTOR and Certificates for Payment issued by the CONSTRUCTION MANAGER, the CITY shall make progress payments on account of the Contract Sum to the CONTRACTOR as provided in the General Conditions.

This Agreement is subject to the provisions of Article 1.7 (commencing at Section 20104.50) of Division 2, Part 3 of the Public Contract Code regarding prompt payment of contractors by local governments. Article 1.7 mandates certain procedures for the payment of undisputed and properly submitted payment requests within 30 days after receipt, for the review of payment requests, for notice to Contractor of improper payment requests, and provides for the payment of interest on progress payment requests that are not timely made in accordance with that Article. This AGREEMENT hereby incorporates the provisions of Article 1.7 as though fully set forth herein.]
V. RETENTION OF SECURITIES
Public Contract Code Section 22300 permits the substitution of securities for any monies withheld by a public agency to ensure performance under a contract, at the request and expense of the CONTRACTOR. The provisions of Public Contract Code are set out in Attachment 3 , attached and incorporated into this AGREEMENT.

VI. INDEMNITY, DEFENSE AND HOLD HARMLESS AGREEMENT
CONTRACTOR shall indemnify, defend with legal counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or

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in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

CONTRACTOR obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.

VII. PREVAILING WAGES
A. Wage rates for this Project shall be in accordance with the “General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1", for Imperial County. Wage rates shall conform with those available at www.dir.ca.gov/OPRL/Pwd and on the Project site.

B. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

2. Section 1777.4 - Apprenticeship Requirements.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1775 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

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VIII. RECORD AUDIT
In accordance with Government Code, Section 8546.7, records of both the CITY and the CONTRACTOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

IX. CLAIM PROCEDURES UNDER PUBLIC CONTRACT CODE SECTION 9204 CONTRACTOR shall comply with the procedure set forth in Public Contracts Code section 9204 for any claim, as that term is defined therein, for one or more of the following:
1) a time extension, including, without limitation, for relief from damages or penalties for delay, 2) payment of money or damages arising from work done pursuant to this Agreement, and/or 3) payment of an amount disputed by the AGENCY under this Agreement. The provisions of Section 9204 are set out in Attachment 4 , attached and incorporated as if fully set forth herein.

X. CERTIFICATIONS
A. Contractor shall have a Class A or B License from the Contractors State License Board of the State of California.

XI. FINAL PAYMENT
Final payment, constituting the entire unpaid balance of the Agreement Sum, shall be paid by the CITY to the CONTRACTOR no sooner than thirty-five (35) days after a Notice of Completion has been recorded, unless otherwise stipulated in the Notice of Completion, provided the work has then been completed, the Agreement fully performed, and a final Certificate for Payment has been issued by the Architect.

XII. CONTRACTOR'S FAILURE TO PROCURE COMPLETION OF PROJECT In the event CONTRACTOR fails to furnish tools, equipment, or labor in the necessary quantity or quality, or fails to prosecute the work or any part thereof contemplated by this Agreement in a diligent and workmanlike manner, and if the CONTRACTOR for a period of three (3) calendar days after receipt of written demand from CITY or its designated representative to do so, fails to furnish tools, equipment, or labor in the necessary quantity or quality, and to prosecute its work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within said three (3) calendar days, fails to continue to do so; then the CITY may exclude the CONTRACTOR from the premises, or any portion thereof, and take possession of said premises or any portion thereof, together with all material and equipment thereon, and may complete the work contemplated by this Agreement or any portion of said work, either by furnishing the tools, equipment, labor or material necessary, or by letting the unfinished portion of said work, or the portion taken over by the CITY to another contractor or by a combination of such methods. In any event,

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the procuring of the completion of said work, or the portion thereof taken over by the CITY, shall be a charge against the CONTRACTOR, and may be deducted from any money due or becoming due to CONTRACTOR from the CITY, or the CONTRACTOR shall pay the CITY the amount of said charge, or the portion thereof unsatisfied. The sureties provided for under this Agreement shall become liable for payment should CONTRACTOR fail to pay in full any said cost incurred by the CITY.

XIII. INSURANCE
Prior to the beginning of and throughout the duration of the Work, CONTRACTOR and its subcontractors shall maintain insurance in conformance with the requirements set forth below. CONTRACTOR will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so.

CONTRACTOR acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to CONTRACTOR or its subcontractors in excess of the limits and coverage identified in this Agreement and which is applicable to a given loss, claim or demand, will be equally available to CITY.

A. CONTRACTOR shall provide the following types and amounts of insurance:

Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.

General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth

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above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.

Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.

Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a CONTRACTOR’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.

Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only the CITY has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below.

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The named insureds shall be CONTRACTOR and CITY, including its officers, officials, employees, and agents. All Subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear. CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY. The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the CITY. The CITY will act as a fiduciary for all other interests in the Project.

Policy shall be provided for replacement value on an "all risk" basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sub limits and shall be submitted to the CITY prior to commencement of construction.

Other provisions or requirements
Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. CONTRACTOR shall 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 hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors.

CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

Primary/noncontributing. Coverage provided by CONTRACTOR shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a

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combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements 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 will withhold amounts sufficient to pay premium from CONTRACTOR payments. In the alternative, CITY may cancel this Agreement.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its sub consultants.

Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.

Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for

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nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that CONTRACTOR’s insurance shall apply separately to each insured against who claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause. CONTRACTOR agrees to ensure that its sub-consultants, subcontractors, and any other party involved with the project that is brought onto or involved in the project by CONTRACTOR, provide the same minimum insurance coverage and endorsements required of CONTRACTOR. CONTRACTOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONTRACTOR agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.

City’s right to revise requirements. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90) day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate CONTRACTOR’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.

Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

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XIV. CONTRACTOR'S LICENSE; CITY BUSINESS LICENSE
CONTRACTOR must possess at the time of commencing work and throughout the Project duration, a Contractor's License, issued by the State of California, which is current and in good standing. CONTRACTOR shall ensure that any subcontractor working on the Project possesses at the time of commencing work and throughout the Project duration, a Contractor's License, issued by the State of California, which is current and in good standing.

CONTRACTOR shall have a current City business license at the time of commencement of work on the project.

XV. REGISTRATION REQUIREMENTS
Pursuant to Section 1771.1(a) of the Labor Code:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” CONTRACTOR must be registered with the Department of Industrial Relations (DIR) of the State of California in order to be eligible to work on public works projects.

CONTRACTOR must ensure registration with the DIR that is active and in good standing.

No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

The CONTRACTOR is not subject to public works requirements (including registration with the DIR) if the public works project is under $1,000, unless the CITY knows that the same CONTRACTOR will be awarded total project costs in excess of $1,000 for a given year.

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XVI. CORPORATION IN GOOD STANDING
If CONTRACTOR is a corporation, the undersigned hereby represents and warrants that the corporation is duly incorporated and in good standing in the State of California, and that , whose title is , is authorized to act for and bind the corporation.

XVII. PROVISIONS REQUIRED BY LAW
Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein and the Agreement shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either party the Agreement shall forthwith be physically amended to make such insertion or correction.

XVIII. SUBSURFACE HAZARDOUS MATERIALS
A. In the event trenches or other excavations extend deeper than four (4) feet below the surface, the CONTRACTOR shall promptly, and before the following conditions are disturbed, notify the CITY in writing of any:

1. Material that the CONTRACTOR believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code that is required to be removed to a Class I, Class II or Class III disposal site in accordance with the provisions of existing law.

2. Subsurface or latent physical conditions at the site differing from those indicated.

3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in the Work or the character provided for in the CONTRACT.

B. Upon receipt of said notification the CITY will investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the CONTRACTOR's cost of or the time required for performance of any part of the work, the CITY will issue a change order under the procedures described in the General Conditions.

C. In the event that a dispute arises between the CITY and the CONTRACTOR whether the conditions materially differ, or involve hazardous waste or cause a decrease or increase in the CONTRACTOR's cost of or time required for performance of any part of the work, the CONTRACTOR shall not be excused from any scheduled completion date provided for by the Agreement, but shall proceed with all work to be performed under the Agreement. The CONTRACTOR shall retain any and all rights provided either by Agreement or by law which pertain to the resolution of disputes and protests between the contracting parties.

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XIX. LIQUIDATED DAMAGES
Pursuant to Government Code Section 53069.85, if work is not completed within the contract time or in strict accordance with the Project Schedule, it is understood, acknowledged and agreed that the CITY will suffer damage. It is therefore agreed that the CONTRACTOR shall pay to the CITY the sum of for each and every calendar day of delay beyond the Contract Time, or beyond any completion schedule, construction schedule or Project milestones established in or pursuant to the Project Schedule, or beyond the time indicated in the Project Schedule for any individual Contract activity.

CONTRACTOR expressly understands, acknowledges and agrees that such liquidated damages can and shall be imposed if the CONTRACTOR does not meet each and every aspect of any activity schedule, completion schedule, construction schedule or Project milestones established in or pursuant to the Project Schedule. If the CITY accepts work or makes any payment under this Agreement after a default by reason of delays, the acceptance of such work and/or payment(s) shall in no respect constitute a waiver or modification of any provisions regarding Contract Time, a completion schedule, the Project Schedule or the accrual of liquidated damages. In the event the same is not paid, the CONTRACTOR further agrees that the CITY may deduct the amount thereof from any money due or that may become due the CONTRACTOR under the Agreement. This Article does not exclude recovery of damages under provisions of the Contract Documents, and is expressly in addition to the CITY’s ability to seek other damages.

CONTRACTOR is to refer to Project Construction Schedule for duration of individual activities. Liquidated damages may be assessed if any individual activity duration exceeds the time indicated for that activity on the Project Construction Schedule.

XX. COMPONENT PARTS OF THE CONTRACT
This Agreement entered into consists of the following CONTRACT DOCUMENTS, all of which are component parts of the Agreement as if herein set out in full or attached hereto:

Notice Inviting Bids List of Subcontractors
Description of Work Bid Bond
Instructions to Bidders Bidder’s General Information
Bid Form Contract
Non-Collusion Declaration Workers’ Compensation Certificate Site Visit Certification Drug/Alcohol Testing Requirements Faithful Performance Bond Construction Plans
Labor and Materials Payment Bond Addenda
General Conditions Drawings
Supplementary General Conditions Change Orders
Corporate Certification or Partnership
-Information Shop Drawings Transmittals

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Project Construction Schedule Contractor’s Certificate Regarding Non Asbestos Containing Materials
Project Specifications Project FF&E Specifications
Contractor’s Certification of Qualification Public Contract Code 22300 -For License Classification
Public Contract Code Section 9204
All of the above named CONTRACT DOCUMENTS are intended to be complementary.

Work required by one of the above named CONTRACT DOCUMENTS and not by others shall be done as if required by all.

XXI. ENTIRE CONTRACT
This Agreement constitutes the entire contract of the parties. No other agreements or contracts, whether oral or written, pertaining to the work to be performed, exist between the parties. This Agreement can be modified only by an amendment in writing, signed by both parties.

CONTRACTOR CITY
[Name of Contractor] City of El Centro
By: ____________________________ By: ____________________________

Title: __________________________ Title: __________________________ Date: __________________________ Date: __________________________ ATTACHMENTS:

1. Faithful Performance Bond

2. Labor and Materials Bond

3. Public Contract Code Section 22300

4. Public Contract Code Section 9204

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PERFORMANCE BOND
Whereas, The City Council of the City of El Centro, State of California, and _________________________________ (hereinafter designated as “principal”) have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated __________, 20__, and identified as project _______________________________________________, is hereby referred to and made a part hereof; and
Whereas, Said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement.

Now, therefore, we, the principal and _____________________________________, as surety, are held and firmly bound unto the City of El Centro (hereinafter designated as “El Centro”) in the penal sum of ____________________ dollars ($__________) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the above-bounded principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless El Centro, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by El Centro in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the work or to the specifications.

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In Witness Whereof, this instrument has been duly executed by the principal and surety above named, on ______________________, 20__.
(SEAL) (SEAL)
(CONTRACTOR) (Surety)
By: By:
(Signature) (Signature)
- END OF PERFORMANCE BOND –

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PAYMENT BOND
Whereas, The City Council of the City of El Centro, State of California, and _________________________ (hereinafter designated as “the principal”) have entered into an Agreement whereby the principal agrees to install and complete certain designated public improvements, which Agreement, dated _____, 20 ___, and identified as project _________________________________________________, is hereby referred to and made a part hereof; and
Whereas, under the terms of the Agreement, the principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of El Centro to secure the claims to which reference is made as set out in Sections 9550 and following of the Civil Code of the State of California.

Now, therefore, the principal and the undersigned as corporate surety, are held firmly bound unto the City of El Centro and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the Agreement and referred to in Section 9550 and following of the Civil Code in the sum of
________________________________________________________ dollars ($__________ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City of El Centro in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Section 9550 and following of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition.

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In Witness Whereof, this instrument has been duly executed by the principal and surety above named, on _____________, 20___.
(SEAL) (SEAL)
(CONTRACTOR) (Surety)
By: By:
(Signature) (Signature)
- END OF PAYMENT BOND -

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Public Contract Code Section 22300

(a) For purposes of this section, “contractor” includes, but is not limited to, a contractor performing a public works contract, as defined in Section 1101, and any person or entity that would qualify as a contractor under Section 6106.5.
(b) Provisions shall be included in any invitation for bid and in any contract documents to permit the substitution of securities for any moneys withheld by a public agency to ensure performance under a contract; however, substitution of securities provisions shall not be required in contracts in which there will be financing provided by the Farmers Home Administration of the United States Department of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. Sec. 1921 et seq.), and where federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of the contractor, securities equivalent to the amount withheld shall be deposited with the public agency, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to the contractor. Upon satisfactory completion of the contract, the securities shall be returned to the contractor.
(c) Alternatively, the contractor may request and the owner shall make payment of retentions earned directly to the escrow agent at the expense of the contractor. At the expense of the contractor, the contractor may direct the investment of the payments into securities and the contractor shall receive the interest earned on the investments upon the same terms provided for in this section for securities deposited by the contractor. Upon satisfactory completion of the contract, the contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the owner, pursuant to the terms of this section. (d) Securities eligible for investment under this section shall include those listed in Section 16430 of the Government Code, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed to by the contractor and the public agency.

The contractor shall be the beneficial owner of any securities substituted for moneys withheld and shall receive any interest thereon.

Failure to include these provisions in bid and contract documents shall void any provisions for performance retentions in a public agency contract.

For purposes of this section, the term “public agency” shall include, but shall not be limited to, chartered cities.
(e) (1) Any contractor who elects to receive interest on moneys withheld in retention by a public agency shall, at the request of any subcontractor, make that option available to the subcontractor

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regarding any moneys withheld in retention by the contractor from the subcontractor. If the contractor elects to receive interest on any moneys withheld in retention by a public agency, then the subcontractor shall receive the identical rate of interest received by the contractor on any retention moneys withheld from the subcontractor by the contractor, less any actual pro rata costs associated with administering and calculating that interest. In the event that the interest rate is a fluctuating rate, the rate for the subcontractor shall be determined by calculating the interest rate paid during the time that retentions were withheld from the subcontractor. If the contractor elects to substitute securities in lieu of retention, then, by mutual consent of the contractor and subcontractor, the subcontractor may substitute securities in exchange for the release of moneys held in retention by the contractor.
(2) This subdivision shall apply only to those subcontractors performing more than five percent of the contractor’s total bid.
(3) No contractor shall require any subcontractor to waive any provision of this section. (f) The Legislature hereby declares that the provisions of this section are of statewide concern and are necessary to encourage full participation by contractors and subcontractors in public contract procedures.
(g) The escrow agreement used hereunder shall be null, void, and unenforceable unless it is substantially similar to the following form:

ESCROW AGREEMENT FOR

SECURITY DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement is made and entered into by and between whose address is
hereinafter called “Owner,”
whose address is
hereinafter called “Contractor” and
whose address is

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hereinafter called “Escrow Agent.”
For the consideration hereinafter set forth, the Owner, Contractor, and Escrow Agent agree as follows:
(1) Pursuant to Section 22300 of the Public Contract Code of the State of California, Contractor has the option to deposit securities with Escrow Agent as a substitute for retention earnings required to be withheld by Owner pursuant to the Construction Contract entered into between the Owner and Contractor for ____ in the amount of ____ dated ____ (hereinafter referred to as the “Contract”). Alternatively, on written request of the Contractor, the Owner shall make payments of the retention earnings directly to the Escrow Agent. When the Contractor deposits the securities as a substitute for Contract earnings, the Escrow Agent shall notify the Owner within 10 days of the deposit. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention under the terms of the Contract between the Owner and Contractor. Securities shall be held in the name of ____, and shall designate the Contractor as the beneficial owner. (2) The Owner shall make progress payments to the Contractor for those funds which otherwise would be withheld from progress payments pursuant to the Contract provisions, provided that the Escrow Agent holds securities in the form and amount specified above. (3) When the Owner makes payment of retentions earned directly to the Escrow Agent, the Escrow Agent shall hold them for the benefit of the Contractor until the time that the escrow created under this contract is terminated. The Contractor may direct the investment of the payments into securities. All terms and conditions of this agreement and the rights and responsibilities of the parties shall be equally applicable and binding when the Owner pays the Escrow Agent directly.
(4) Contractor shall be responsible for paying all fees for the expenses incurred by Escrow Agent in administering the Escrow Account and all expenses of the Owner. These expenses and payment terms shall be determined by the Owner, Contractor, and Escrow Agent. (5) The interest earned on the securities or the money market accounts held in escrow and all interest earned on that interest shall be for the sole account of Contractor and shall be subject to withdrawal by Contractor at any time and from time to time without notice to the Owner. (6) Contractor shall have the right to withdraw all or any part of the principal in the Escrow Account only by written notice to Escrow Agent accompanied by written authorization from the Owner to the Escrow Agent that Owner consents to the withdrawal of the amount sought to be withdrawn by Contractor.

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(7) The Owner shall have a right to draw upon the securities in the event of default by the Contractor. Upon seven days’ written notice to the Escrow Agent from the owner of the default, the Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the Owner.
(8) Upon receipt of written notification from the Owner certifying that the Contract is final and complete, and that the Contractor has complied with all requirements and procedures applicable to the Contract, Escrow Agent shall release to Contractor all securities and interest on deposit less escrow fees and charges of the Escrow Account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payments of fees and charges.
(9) Escrow Agent shall rely on the written notifications from the Owner and the Contractor pursuant to Sections (5) to (8), inclusive, of this Agreement and the Owner and Contractor shall hold Escrow Agent harmless from Escrow Agent’s release and disbursement of the securities and interest as set forth above.
(10) The names of the persons who are authorized to give written notice or to receive written notice on behalf of the Owner and on behalf of Contractor in connection with the foregoing, and exemplars of their respective signatures are as follows:

On behalf of Owner: On behalf of Contractor:

Title Title
Name Name
Signature Signature
Address Address
On behalf of Escrow Agent:

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Title
Name
Signature
Address
At the time the Escrow Account is opened, the Owner and Contractor shall deliver to the Escrow Agent a fully executed counterpart of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above.

Owner Contractor
Title Title
Name Name
Signature Signature

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Public Contract Code Section 9204
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner. (b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project. (c) For purposes of this section:
(1) "Claim" means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled.
(C) Payment of an amount that is disputed by the public entity. (2) "Contractor" means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project. (3) (A) "Public entity" means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, CITY, special CITY, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.
(B) "Public entity" shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department.
(ii) The Department of Transportation as to any project under the jurisdiction of that department.
(iii) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code.

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(iv) The Military Department as to any project under the jurisdiction of that department.
(v) The Department of General Services as to all other projects. (vi) The High-Speed Rail Authority.
(4) "Public works project" means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.
(5) "Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor. (d) (1) (A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant 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, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45- day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.
(D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply. (B) (A) If the claimant disputes the public entity's written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant 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 the

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public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. 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. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.
(C) 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.
(D) Unless otherwise agreed to by the public entity 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. (E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties' dispute. (2) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity's failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant.
(3) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(4) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement

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of the reasons for not having done so.
(e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.
(i) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.
- END OF CONTRACT DOCUMENTS -

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GENERAL CONDITIONS

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GENERAL CONDITIONS
ARTICLE 1 -- DEFINITIONS
Wherever used in these General Conditions or in the other Contract Documents the following terms have the meanings indicated which are applicable to both the singular and plural thereof.

Where an entire word is capitalized in the definitions and is found un-capitalized in the Contract Documents it has the ordinary dictionary definition.

Addenda - Written or graphic instruments issued prior to the opening of Bids which make additions, deletions or revisions to the Contract Documents.

Agent - CONSTRUCTION MANAGER is the Agent of OWNER.

Agreement - The written contract between OWNER and CONTRACTOR covering the WORK to be performed; other documents are attached to the Agreement and made a part thereof as provided therein.

Allowance - A Bid item that adds a specified quantity of WORK to the Agreement work scope which OWNER may unilaterally direct CONTRACTOR to perform, or elect not to have performed.

Application for Payment - The form furnished by CONSTRUCTION MANAGER which is to be used by CONTRACTOR to request progress or Final Payment and which is to be accompanied by such supporting documentation as is required by the Contract Documents.

Asbestos - Any material that contains more than one (1) percent asbestos and is friable or is releasing asbestos fibers into the air above current action levels established by the United States Occupational Safety and Health Administration (“OSHA”).

Beneficial Occupancy - Use by OWNER of the WORK prior to final acceptance.

Bidder - Any individual, firm, partnership, corporation or combination thereof, submitting a Bid for the WORK, acting directly or through a duly authorized representative.

Bid - The offer or proposal of the Bidder submitted on the prescribed form setting forth the price or prices for the WORK.

Bidding Documents - The advertisement or Invitation to Bid, Instructions to Bidders, the Bid form, and the proposed Contract Documents (including all Addenda issued prior to receipt of Bids).

Bonds - Bid, Performance and Payment Bonds and other instruments, which protect against loss due to inability or refusal of CONTRACTOR to perform its contract.

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Change Order - A document recommended by CONSTRUCTION MANAGER, which is signed by CONTRACTOR and OWNER and authorizes an addition, deletion or revision in the WORK, or an adjustment in the Contract Price or the Contract Time, issued on or after the Effective Date of the Agreement.

CITY - OWNER (See OWNER’s definition in this section).

City of El Centro - OWNER (See OWNER’s definition in this section).

Claim - A dispute becomes a Claim only after CONTRACTOR receives and refuses to accept CONSTRUCTION MANAGER’s initial determination, and is certified as required by Article

16.3. Codes - The terms Government Code, Labor Code, etc. refer to codes of the State of California.

CONSTRUCTION MANAGER - The individual, partnership, corporation, joint venture or other legal entity named as such by written notice from OWNER.

Construction Manager Order - A written order issued by CONSTRUCTION MANAGER which clarifies or interprets the Procurement Documents or orders minor changes or alterations in the scope of WORK to be furnished but which does not involve a change in the Contract Price or the Contract Time.

Contract Documents - The Notice Inviting Bids, Instructions to Bidders, Bid forms (including the Bid, Bid schedule(s), information required of Bidder, Bid bond, and all required certificates and affidavits), Agreement, Performance Bond, Payment Bond, General Conditions, Supplementary General Conditions, SPECIAL PROVISIONS, Drawings and all Addenda, and Change Orders executed pursuant to the provisions of the Contract Documents.

Contract Milestone - A principal event specified in the Contract Documents relating to an intermediate completion date of a portion of the WORK, or a period of time within which the portion of the WORK should be performed prior to Substantial Completion of all the WORK.

Contract Price - The total monies payable by OWNER to CONTRACTOR under the terms and conditions of the Contract Documents.

Contract Time - The number of successive calendar Days stated in the Contract Documents for the completion of the WORK.

CONTRACTOR - The individual, partnership, corporation, joint venture or other legal entity with whom OWNER has executed the Agreement.

Day - A calendar day of twenty-four (24) hours measured from midnight to the next midnight.

Defective Work - Work that is unsatisfactory, faulty or deficient; or that does not conform to the Contract Documents; or that does not meet the requirements of any inspection, reference standard,

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test or approval referred to in the Contract Documents; or work that has been damaged by anyone other than OWNER prior to CONSTRUCTION MANAGER’s recommendation of final payment.

Demobilization - The complete dismantling and removal by CONTRACTOR of all of CONTRACTOR’s temporary facilities, equipment and personnel at the site.

Drawings - The drawings, plans, maps, profiles, diagrams and other graphic representations which indicate the character, location, nature, extent and scope of the WORK and which have been prepared by OWNER and are referred to in the Contract Documents. Shop Drawings are not Drawings as so defined.

Disputed Work - A dispute exists from the time CONTRACTOR disagrees with a decision or determination made by CONSTRUCTION MANAGER until CONSTRUCTION MANAGER renders an initial determination. If the issue is unresolved it becomes a Claim.

Effective Date of the Agreement - The date indicated in the Agreement on which it becomes effective, but if no such date is indicated it means the date on which the Agreement is signed and delivered by the last of the two parties to sign and deliver.

Engineer - Wherever the word Engineer is found in these Contract Documents or in any referenced document, it shall mean CONSTRUCTION MANAGER.

Field Order - A written order issued by OWNER which changes the Agreement WORK scope and involves a change in the Contract Price or Contract Time or the intent of the Agreement.

Final Payment - is defined as the last progress payment made to CONTRACTOR for earned funds, less retainage as applicable, less deductions listed in Article 14. CONTRACTOR is entitled to this payment when the Notice of Completion is issued.

General Conditions - Section General Conditions of the Contract Specification.

Hazardous Waste - The term Hazardous Waste shall have the meaning provided in Section 104 of the Solid Waste Disposal Act (42 USC Section 6903) as amended from time to time or, as defined in section 25117 of the Health and Safety Code, that is required to be removed to a class I, class II or class III disposal site in accordance with provisions of existing law, whichever is more restrictive.

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Holidays - Legal Holidays observed by OWNER occur on:

New Year’s Day - January 1
Martin Luther King’s Birthday - Third (3rd) Monday in January President’s Day - Third (3rd) Monday in February
Good Friday – The afternoon of the Friday before Easter Memorial Day - Last Monday in May
Juneteenth – June 19
Independence Day - July 4
Labor Day - First (1st) Monday in September
Veteran’s Day - November 11
Thanksgiving Day - Fourth (4th) Thursday in November
The Day after Thanksgiving – The Friday after the fourth (4th) Thursday in November Christmas Eve – The afternoon of December 24
Christmas Day - December 25
New Years Eve – The afternoon of December 31
If any Holiday listed above falls on a Saturday, Saturday and the preceding Friday are both legal Holidays. If the Holiday should fall on a Sunday, Sunday and the following Monday are both legal Holidays.

Interfacing Work - Work which connects to, abuts or meets with work of another contractor.

Laws and Regulations - Any and all applicable laws, rules, regulations, ordinances, codes and/or orders of any and all governmental bodies, agencies, authorities and courts having jurisdiction.

Lump Sum Work - Work to be paid on the basis of lump sum prices.

Mechanic’s Lien - A form of security, an interest in real property, which is held to secure the payment of an obligation. When referred to in these Contract Documents, Mechanic’s Lien or lien means Stop Notice.

Milestone - See Contract Milestone.

Mobilization - The establishment by CONTRACTOR of the temporary facilities, equipment and personnel at the site thereby enabling the WORK to commence.

Notice of Award - The written notice by OWNER to the apparent low Bidder stating that upon compliance by the apparent low Bidder with the conditions precedent enumerated therein within the time specified, OWNER will enter into an Agreement.

Notice of Completion - A form signed by DESIGN CONSULTANT, CONSTRUCTION MANAGER and CONTRACTOR recommending to OWNER that the WORK is complete and fixing the date of completion. After acceptance of the WORK by OWNER’s governing body, the form is signed by OWNER and filed with the County Recorder. This filing starts the thirty (30) Day lien filing period on the WORK.

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Notice to Proceed - The written notice issued by OWNER to CONTRACTOR authorizing CONTRACTOR to proceed with the WORK and establishing the date of commencement of the Contract Time.

OWNER’s Agent - CONSTRUCTION MANAGER is OWNER’s Agent.

OWNER - The City of El Centro, acting through its legally designated officials, officers or employees.

Partial Utilization - Use by OWNER of a substantially completed part of the WORK for the purpose for which it is intended prior to Substantial Completion of all the WORK. (See Beneficial Occupancy)
PCBs - Polychlorinated biphenyls.

Petroleum - Petroleum, including crude oil or any fraction thereof which is liquid at standard conditions of temperature and pressure (sixty (60) degrees Fahrenheit and fourteen and seventenths (14.7) pounds per square inch absolute), such as oil, petroleum, fuel oil, oil sludge, oil refuse, gasoline, kerosene and oil mixed with other non-Hazardous Wastes and crude oils.

Project - The total construction of which the WORK to be provided under the Contract Documents may be the whole, or a part as indicated elsewhere in the Contract Documents.

Radioactive Material - Source, special nuclear or byproduct material as defined by the Atomic Energy Act of 1954 (42 USC Sections 2011 et seq.) as amended from time to time.

Request for Information - The standardized form furnished by OWNER for CONTRACTOR’s use when making written requests for information to CONSTRUCTION MANAGER, and upon which the response will be answered and returned.

Request for Proposal - The standardized form used by CONSTRUCTION MANAGER to request a proposal from CONTRACTOR for proposed changes in the WORK.

Samples - Physical examples of materials, equipment or workmanship that are representative of some portion of the WORK and which establish the standards by which such portion of the WORK will be judged.

Safety - Safety includes health and security.

Shop Drawings - All drawings, diagrams, illustrations, schedules and other data which are specifically prepared by or for CONTRACTOR and submitted by CONTRACTOR to illustrate some portion of WORK and all illustrations, brochures, standard schedules, performance charts, instructions and diagrams to illustrate material or equipment for some portion of the WORK.

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Specifications – The directions, provisions and requirements contained in the Bidding Documents, contract forms, conditions of the Agreement and the SPECIAL PROVISIONS, as listed in the Table of Contents.

Stop Notice - A legal remedy for Subcontractors and Suppliers who contribute to public works, but who are not paid for their work, which secures payment from construction funds possessed by OWNER. For public property, the Stop Notice remedy is designed to substitute for Mechanic’s Lien rights.

Submittals - The information which is specified for submission to CONSTRUCTION MANAGER in accordance with Article 6.20 of the General Conditions.

Sub-Consultant - The individual, partnership, corporation, joint venture or other legal entity having a direct contract with DESIGN CONSULTANT, CONSTRUCTION MANAGER or with any of their consultants to furnish services with respect to the Project and who is identified as such in the Supplementary General Conditions.

Subcontractor - An individual, partnership, corporation, joint venture or other legal entity having a direct contract with CONTRACTOR or with any other Subcontractor for the performance of a part of the WORK at the site.

Substantial Completion - Refers to when the WORK has progressed to the point where, in the opinion of CONSTRUCTION MANAGER as evidenced by Notice of Completion as applicable, it is sufficiently complete, in accordance with the Contract Documents, so that the WORK can be utilized for the purposes for which it is intended, and after the operation demonstration is complete, where applicable.

SPECIAL PROVISIONS – That section of the Contract Documents consisting of written technical descriptions of products and execution of the WORK.

Supplementary General Conditions- The part of the Contract Documents which make additions, deletions or revisions to these General Conditions.

Supplier - A manufacturer, fabricator, supplier, distributor, material worker or vendor.

Underground Utilities - All pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks, tunnels or other such facilities or attachments, and any encasement containing such facilities which have been installed underground to furnish any of the following services or materials: electricity, gases, steam, liquid petroleum products, telephone or other communications, cable television, sewage and drainage removal, traffic or other control systems or water.

Unit Price Work - Specific WORK scope included in the Agreement WORK scope to be paid for on the basis of unit prices. OWNER may unilaterally direct CONTRACTOR to perform the WORK, or elect not to have the WORK performed.

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WORK - The entire completed construction or the various separately identifiable parts thereof required to be furnished under the Contract Documents. WORK is the result of performing or furnishing labor and furnishing and incorporating materials and equipment into the construction, and performing or furnishing services and furnishing documents, all as required by the Contract Documents.

Work Change Directive - A written directive to CONTRACTOR, issued on or after the Effective Date of the Agreement and recommended by CONSTRUCTION MANAGER, and signed by OWNER ordering an addition, deletion or revision in the WORK, or responding to differing or unforeseen physical conditions under which the WORK is to be performed or to emergencies. A Work Change Directive will not change the Contract Price or the Contract Time, but is evidence that the parties expect that the change directed or documented by a Work Change Directive will be incorporated in a subsequently issued Change Order following negotiations by the parties as to its effect, if any, on the Contract Price or Contract Time.

ARTICLE 2 -- PRELIMINARY MATTERS

2.1 DELIVERY OF BONDS/INSURANCE CERTIFICATES - When CONTRACTOR delivers the signed Agreements to OWNER, CONTRACTOR shall also deliver to OWNER such Bonds and Insurance Policies and Certificates as CONTRACTOR may be required to furnish in accordance with the Contract Documents.

2.2 COPIES OF DOCUMENTS - OWNER shall furnish to CONTRACTOR ten (10) copies of the Contract Documents as specified in the Agreement and ten (10) sets of full-scale Drawings.

Additional quantities of the Contract Documents will be furnished at reproduction cost.

2.3 COMMENCEMENT OF CONTRACT TIME; NOTICE TO PROCEED - The Contract Time will start to run on the commencement date stated in the Notice to Proceed.

2.4 STARTING THE WORK - CONTRACTOR shall begin to perform the WORK within ten (10) Days after the commencement date stated in the Notice to Proceed, but no work shall be done at the site prior to said commencement date. In addition, any requirements in the Supplemental General Conditions must be satisfied.

2.5 CONTRACTOR MUST STUDY CONTRACT DOCUMENTS - Before undertaking each part of the WORK, CONTRACTOR shall carefully study and compare the Contract Documents and check and verify pertinent figures shown thereon and all applicable field measurements.

CONTRACTOR shall promptly report in writing to CONSTRUCTION MANAGER any conflict, error or discrepancy which CONTRACTOR may discover and shall obtain a written interpretation or clarification from CONSTRUCTION MANAGER before proceeding with any work affected thereby.

2.6 PRELIMINARY SUBMITTALS - Preliminary submittals shall be provided to CONSTRUCTION MANAGER in accordance with Division 1 requirements.

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2.7 PRECONSTRUCTION CONFERENCE - CONTRACTOR is required to attend a preconstruction conference. This conference will be attended by CONSTRUCTION MANAGER and others as appropriate in order to discuss the WORK in accordance with the applicable procedures specified in the General Requirements.

CONTRACTOR is required to schedule and attend a preconstruction conference with the Imperial Irrigation District (“IID”) prior to the construction or demolition of any electrical improvements.

2.8 SUBCONTRACTOR MOBILIZATION MEETING - Prior to the start of each major Subcontractor’s site work, CONTRACTOR, the involved Subcontractor and CONSTRUCTION MANAGER shall attend a pre-start meeting to discuss the schedule, coordination, procedures and other administrative issues.

2.9 CONTRACTOR DUTY TO ADVISE OWNER OF KNOWN OR DISCOVERED PROBLEMS - CONTRACTOR is reminded of his obligation to advise OWNER of any errors and/or omissions in the Contract Documents, or changes to thereof, which CONTRACTOR may be aware through special knowledge or discovered during the Bid process.

ARTICLE 3 -- CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE

3.1 INTENT - The Contract Documents comprise the entire agreement between OWNER and CONTRACTOR concerning the WORK. The Contract Documents are complementary; what is called for by one is as binding as if called for by all. The Contract Documents will be construed in accordance with the law of the place of the WORK.

3.2 INTENT OF WORK TO BE FUNCTIONALLY COMPLETE

3.2.1 Work to be Complete - It is the intent of the Contract Documents to describe the WORK to be constructed in accordance with the Contract Documents. Any work, materials or equipment that may reasonably be inferred from the Contract Documents or from prevailing custom or trade usage as being required to produce the intended result shall be supplied whether or not specifically called for or identified in the Contract Documents. When words or phrases which have a wellknown technical or construction industry or trade meaning are used to describe work, materials or equipment, such words or phrases shall be interpreted in accordance with that meaning unless a definition has been provided in Article 1 of the General Conditions.

3.2.2 Necessary Utilities - If utilities to equipment/fixtures are not shown but are necessary to operate the equipment/fixtures, the utilities service installation is considered to be part of the WORK. The implied WORK will conform to the appropriate sections of the technical Specifications.

3.3 CLARIFICATIONS AND INTERPRETATIONS OF THE CONTRACT DOCUMENTS

3.3.1 Referenced Standards - Reference to standard specifications, manuals or Codes of any technical society, organization or association or to the laws or regulations of any governmental authority, whether such reference be specific or by implication, shall mean the latest standard

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specification, manual, code or laws or regulations in effect at the time of opening of Bids, except as may be otherwise specifically stated. However, no provision of any referenced standard specification, manual or code shall be effective to change the duties and responsibilities of OWNER, CONTRACTOR or CONSTRUCTION MANAGER or any of their consultants, agents or employees from those set forth in the Contract Documents.

3.3.2 Discovery of Problem Notice - If, during the performance of the WORK, CONTRACTOR discovers any conflict, error, ambiguity or discrepancy with the WORK within the Contract Documents or between the Contract Documents and any provision of any such Laws and Regulations applicable to the performance of the WORK or of any such standard, specification, manual or code or of any instruction of any Supplier, CONTRACTOR shall report it to CONSTRUCTION MANAGER in writing within seven (7) calendar Days of discovery.

CONTRACTOR shall not proceed with the WORK affected thereby, except in an emergency, unless directed by CONSTRUCTION MANAGER. Any WORK performed by CONTRACTOR that is not directed by CONSTRUCTION MANAGER shall be at its own risk.

3.3.3 Order of Precedence of Contract Documents - In resolving conflicts resulting from errors or discrepancies in any of the Contract Documents, the order of precedence shall be as follows:

3.3.3.1 Permits from other agencies as may be required by law.

3.3.3.2 Change Orders

3.3.3.3 Agreement

3.3.3.4 Addenda

3.3.3.5 CONTRACTOR’s Bid (Bid Form)

3.3.3.6 Notice Inviting Bids

3.3.3.7 Instructions to Bidders

3.3.3.8 Supplementary General Conditions

3.3.3.9 General Conditions

3.3.3.10 SPECIAL PROVISIONS

3.3.3.11 Drawings

3.3.3.12 Referenced Standard Specifications

3.3.4 Order of Precedence of the Drawings - With reference to the Drawings the order of precedence is as follows:

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3.3.4.1 Figures govern over scaled dimensions

3.3.4.2 Detail drawings govern over general drawings

3.3.4.3 Addenda/Change Order drawings govern over Contract Drawings

3.3.4.4 Contract Drawings govern over standard drawings

3.4 AMENDING AND SUPPLEMENTING CONTRACT DOCUMENTS

3.4.1 Amending Contract Documents - The Contract Documents may be amended to provide for additions, deletions and revisions in the WORK or to modify the terms and conditions thereof by a Change Order pursuant to Article 10.

3.4.2 Supplementing Contract Documents - The requirements of the Contract Documents may be supplemented, and minor variations and deviations in the WORK may be authorized, by:

3.4.2.1 - A Construction Manager Order issued by CONSTRUCTION MANAGER.

3.4.2.2 - DESIGN CONSULTANT’s approval of a Shop Drawing or Sample pursuant to Article 6 3.4.2.3 - DESIGN CONSULTANT’s written interpretation or clarification

3.5 REUSE OF DOCUMENTS - Neither CONTRACTOR, nor any Subcontractor or Supplier, nor any other person or organization performing any of the WORK under a contract with OWNER shall have or acquire any title to or ownership rights in any of the Drawings, technical Specifications or other documents used on the WORK, and they shall not reuse any of them on the extensions of the Project or any other project without written consent of OWNER.

ARTICLE 4 -- AVAILABILITY OF LANDS; PHYSICAL CONDITIONS; REFERENCE POINTS

4.1 AVAILABILITY OF LANDS - OWNER shall furnish, as indicated in the Contract Documents, the lands upon which the WORK is to be performed, rights-of-way and easements for access thereto, and such other lands which are designated for the use of CONTRACTOR.

Easements for permanent structures or permanent changes in existing facilities will be obtained and paid for by OWNER, unless otherwise provided in the Contract Documents. Nothing contained in the Contract Documents shall be interpreted as giving CONTRACTOR exclusive occupancy of the lands or rights-of-way provided. CONTRACTOR shall provide, at no additional cost, for all additional lands and access thereto that may be required for temporary construction facilities, borrow areas, waste disposal areas or storage of materials and equipment; provided that CONTRACTOR shall not enter upon nor use any property not under the control of OWNER until a written temporary construction easement agreement has been executed by CONTRACTOR and the property owner, and a copy of said easement furnished to CONSTRUCTION MANAGER prior to said use; and, neither OWNER nor CONSTRUCTION MANAGER shall be liable for any

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claims or damages resulting from CONTRACTOR’s unauthorized trespass or authorized use of any such properties.

4.2 PHYSICAL SITE CONDITIONS

4.2.1 Reports and Drawings - Reference is made to the Supplementary General Conditions for identification of:

4.2.1.1 Subsurface Condition Reports - Those reports of explorations and tests of subsurface conditions at or contiguous to the site that have been utilized by OWNER in preparing the Contract Documents; and

4.2.1.2 Drawings of Existing Structures - Reference is made to the Supplementary General Conditions for identification of those drawings of physical conditions in or relating to existing surface and subsurface structures (except Underground Utilities referred to in section 4.4 of Article 4 herein) which are at or contiguous to the site that have been utilized in the preparation of the Contract Documents.

4.2.2 Limited Reliance By CONTRACTOR On The Technical Data - CONTRACTOR may rely upon the accuracy of the technical data contained in such drawings or reports, however, nontechnical data, interpretations and opinions contained in such drawings or reports are not to be relied on by CONTRACTOR. CONTRACTOR may not rely upon or make any claims against OWNER, OWNER or CONSTRUCTION MANAGER with respect to:

4.2.2.1 the completeness of such reports and drawings for CONTRACTOR’s purposes, including, but not limited to, any aspect of the means, methods, techniques, sequences and procedures of construction to be employed by CONTRACTOR and Safety precautions and programs incident thereto, or

4.2.2.2 other data, interpretations, opinions and information contained in such reports or shown or indicated in such drawings, or

4.2.2.3 any CONTRACTOR interpretation of or conclusion drawn from any technical data or any such data, interpretations, opinions or information.

4.3 DIFFERING SITE CONDITIONS - If CONTRACTOR believes that any subsurface or physical condition at or contiguous to the site that is uncovered or revealed either:

4.3.1 is of such a nature as to establish that any technical data on which CONTRACTOR is entitled to rely as provided in paragraphs 4.2.1 is materially inaccurate, or

4.3.2 is of such a nature as to require a change in the Contract Documents, or

4.3.3 differs materially from that shown or indicated in the Contract Documents, or

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4.3.4 is of an unusual nature and differs materially from conditions ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract Documents, CONTRACTOR shall immediately report it to CONSTRUCTION MANAGER then CONTRACTOR shall, promptly after becoming aware thereof and before further disturbing conditions thereby or performing any work in connection therewith (except in an emergency as permitted by paragraph 6.23), notify OWNER and CONSTRUCTION MANAGER in writing about such condition. CONTRACTOR shall not further disturb such conditions or perform any work in connection therewith (except as aforesaid) until receipt of written order to do so.

4.3.5 OWNER Responsibility - OWNER shall promptly investigate the conditions, and if it finds that the conditions do materially so differ and cause a decrease or increase in CONTRACTOR’s cost of, or the time required for, performance of any part of the WORK, OWNER shall issue a Change Order under the procedures described in Article 10. If OWNER determines that there is no bona fide work scope change or is a minor change which does not impact time or cost, OWNER shall notify CONTRACTOR of this finding within thirty (30) Days.

4.3.6 Disputed Work – If CONTRACTOR and OWNER are unable to reach agreement on Disputed Work, OWNER may direct CONTRACTOR to proceed with the WORK. Payment shall be as later directed, by mediation or arbitration, if OWNER and CONTRACTOR agree thereto, or as fixed in a court of law.

Although not to be construed as proceeding under extra work provisions, CONTRACTOR shall keep and furnish records of Disputed Work in accordance with 11.3.

4.3.7 Disallowance of Entitlement - CONTRACTOR shall not be entitled to any adjustment in the Contract Price or Contract Time or will be deemed to have waived his right to such a claim if:

4.3.7.1 CONTRACTOR knew of the existence of such conditions at the time CONTRACTOR made a final commitment to OWNER in respect of Contract Price and Contract Time by the submission of a Bid or becoming bound under the Agreement; or

4.3.7.2 the existence of such condition could reasonably have been discovered or revealed as a result of any examination, investigation of the site and contiguous areas suggested or required by the Bidding Documents: or

4.3.7.3 CONTRACTOR failed to give the written notice within the time and as required by Article

3.3.2. 4.4 UNDERGROUND UTILITIES

4.4.1 Utilities Indicated - The information and data indicated in the Contract Documents with respect to existing Underground Utilities at or contiguous to the site are based on information and data furnished to OWNER or CONSTRUCTION MANAGER by the owners of such Underground Utilities or by others. Unless it is expressly provided in the Supplementary General Conditions and/or the General Conditions, OWNER and CONSTRUCTION MANAGER shall not be responsible for the accuracy or completeness of any such information or data, and CONTRACTOR

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shall have full responsibility for reviewing and checking all such information and data, for locating all Underground Utilities indicated in the Contract Documents, for coordination of the WORK with the owners of such Underground Utilities during construction, for the Safety and protection thereof and repairing any damage thereto resulting from the WORK, the cost of which will be considered as having been included in the Contract Price.

4.4.2 Utilities Not Indicated - If Underground Utilities are uncovered or revealed at or contiguous to the site which was not indicated in the Contract Documents and which CONTRACTOR could not reasonably have been expected to be aware of, CONTRACTOR shall identify the owner of such Underground Utilities and give written notice thereof to that owner and shall notify CONSTRUCTION MANAGER in accordance with the requirements of the General Conditions and General Requirements.

4.4.3 Action Prior To Starting Work - As provided in section 4216 of the California Government Code, at least two (2) working Days prior to commencing any excavation, CONTRACTOR shall contact the regional notification center (Underground Service Alert of Southern California) and obtain an inquiry identification number.

4.4.4 Locate Utilities - CONTRACTOR shall determine the location and depth of all utilities, including service connections, which have been marked by the respective owners and which may affect or be affected by its operations. Full compensation for such work shall be considered as included in CONTRACTOR’s Bid price.

4.4.5 Protection Of Utilities - CONTRACTOR shall not interrupt the service function or disturb the support of any utility, without authority from OWNER or order from the utility owner. All valves, switches, vaults and meters shall be maintained readily accessible for emergency shutoff.

Where protection is required to ensure support of utilities located as shown on the Plans, CONTRACTOR shall, unless otherwise provided, furnish and place the necessary protection at its expense.

4.4.6 Notification Requirements If Utility Disturbed - CONTRACTOR shall immediately notify CONSTRUCTION MANAGER and utility owner if any utility is disturbed or damaged.

CONTRACTOR shall bear the costs of repair or replacement of any utility damaged by CONTRACTOR.

4.4.7 Removal Of Abandoned Utilities - Unless otherwise specified, CONTRACTOR shall remove all interfering portions of utilities shown on the Plans or indicated in the Bidding Documents as abandoned. Before starting removal operations, CONTRACTOR shall ascertain from the Utility Owner whether the abandonment is complete. The costs involved in the removal and disposal shall be included in the price for the item of work necessitating such removals.

4.4.8 Relocation Of Utilities

4.4.8.1 When the Plans or Specifications provide for CONTRACTOR to alter, relocate or reconstruct a utility, all costs for such work shall be included in the Bid.

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4.4.8.2 Temporary or permanent relocation or alteration of indicated utilities requested by CONTRACTOR for its convenience shall be its responsibility, and CONTRACTOR shall make all arrangements and bear all costs.

4.4.8.3 After award of the Agreement, portions of utilities not indicated in the Contract Documents which are found to interfere with the WORK may be relocated, altered or reconstructed by the utility owner, or CONSTRUCTION MANAGER may order changes in the WORK to avoid interference. Such changes will be paid for in accordance with Article 10.

4.4.9 Delays

4.4.9.1 CONTRACTOR shall immediately notify in writing the utility owner and CONSTRUCTION MANAGER of its construction schedule and any subsequent changes in the construction schedule which will affect the time available for protection, removal or relocation of utilities.

4.4.9.2 CONTRACTOR will not be entitled to damages or additional payment for delays attributable to utility relocations or alterations if correctly located, as noted in the Contract Documents.

4.4.9.3 CONTRACTOR may be given a no cost extension of time for unforeseen delays attributable to unreasonably protracted interferences by others in the relocation of utilities.

4.4.10 Access to the WORK - When necessary, CONTRACTOR shall so conduct its operations as to permit access to the WORK site and provide time for utility work to be accomplished during normal work hours during the progress of the WORK.

4.5 REFERENCE POINTS

4.5.1 Bench Mark - The CONSTRUCTION MANAGER will provide one (1) benchmark, near or on the site of the WORK, and will provide two (2) points near or on the site to establish a base line for use by CONTRACTOR for alignment control. Unless otherwise specified in the General Requirements, CONTRACTOR shall furnish all other lines, grades and benchmarks required for proper execution of the WORK.

4.5.2 Protection of Bench Marks - CONTRACTOR shall preserve all bench marks, stakes and other survey marks, and in case of their removal or destruction by any party, CONTRACTOR shall be responsible for the accurate replacement of such reference points by personnel qualified under Division 3, Chapter 15 of the California Business and Professions Code. CONTRACTOR shall report to CONSTRUCTION MANAGER whenever a reference point is lost, destroyed or requires relocation.

4.6 ASBESTOS, PCBS, PETROLEUM, HAZARDOUS WASTE OR RADIOACTIVE

MATERIAL

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4.6.1 OWNER Responsibility - OWNER shall be responsible for any hazardous material which includes hazardous substances and hazardous waste as defined by sections 25316 and 25117 of the Health and Safety Code, uncovered or revealed at the site which was not identified in the Contract Documents to be within the scope of the WORK. OWNER shall not be responsible for any such materials brought to the site by CONTRACTOR, Subcontractors, Suppliers or anyone else for whom CONTRACTOR is responsible.

4.6.2 CONTRACTOR’s Responsibility - When such hazardous material is encountered, CONTRACTOR shall immediately stop all work in connection with such hazardous condition in any area affected thereby (except in an emergency as required by Article 6) and notify OWNER and CONSTRUCTION MANAGER in writing. OWNER shall promptly evaluate such hazardous condition and take corrective action. CONTRACTOR shall not be required to resume work in any such affected area until after OWNER has delivered to CONTRACTOR written notice specifying that such condition and any affected area has been rendered safe for the reassumption of work, or specifying any special conditions under which such work may be resumed safely.

4.6.3 Dispute - If, after receipt of such special written notice, CONTRACTOR does not agree to resume work based on a reasonable belief it is unsafe, or does not agree to resume work under such special conditions, then OWNER may order such portion of the work that is in connection with such hazardous condition or in such affected area to be deleted from the WORK. OWNER may have such deleted portion of the work performed by OWNER’s own forces or others in accordance with Article 7. If OWNER and CONTRACTOR cannot agree as to entitlement to or the amount or extent of an adjustment, if any, in Contract Price or Contract Time as a result of work stoppage or of deleting such portion of the WORK, then either party may make a Claim as provided in Article 16.

4.6.4 OWNER Hold Harmless - To the fullest extent permitted by Laws and Regulations, OWNER shall indemnify and hold harmless CONTRACTOR, Subcontractors, CONSTRUCTION MANAGER, OWNER and the officers, directors, employees, agents, other consultants and Subcontractors of each and any of them from and against all claims, costs, losses and damages arising out of or resulting from such hazardous condition, provided that any such claim, cost, loss or damage is attributable to bodily injury, sickness, disease or death or to the destruction of tangible property and provided further that any such claim, cost loss or damage is not caused by the consequences of that person’s or entity’s own negligence.

ARTICLE 5 -- BONDS AND INSURANCE

5.1 PERFORMANCE, PAYMENT AND OTHER BONDS

5.1.1 Bond Requirement - CONTRACTOR shall furnish Performance and Payment Bonds, each in the amount set forth in the Supplementary General Conditions as security for the faithful performance and payment of all CONTRACTOR’s obligations under the Contract Documents.

These Bonds shall remain in effect at least until one (1) year after the filing date of Notice of Completion, except as otherwise provided by law or regulation or by the Contract Documents.

CONTRACTOR shall also furnish such other Bonds as are required by the Supplementary General Conditions.

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5.1.2 Licensed Surety - All Bonds shall be in the form prescribed by the Contract Documents and by such sureties which are admitted insurers in the State of California and are subject to regulation by the Department of Insurance, and which also satisfy the requirements stated in section 995.660 of the Code of Civil Procedure, except as provided otherwise by Laws or Regulations. All Bonds signed by an agent must be accompanied by a certified copy of such agent’s authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue Bonds for the limits so required. Such surety companies shall also meet such additional requirements and qualifications as may be provided in the Supplementary General Conditions.

5.1.3 Bankrupt or Insolvent Surety - If the surety on any Bond furnished by CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the WORK is located, CONTRACTOR shall within seven (7) Days thereafter substitute another Bond and Surety, which must be acceptable to OWNER per paragraph 5.1.1 and

5.1.2 above.

5.2 INSURANCE

5.2.1 Insurance Policy Requirements - CONTRACTOR shall purchase and maintain the insurance required under the Construction Services Agreement.

5.2.7 Subcontractor’s Insurance - CONTRACTOR shall either require each of its Subcontractors to procure and to maintain public liability and property damage insurance and vehicle liability insurance of the type and in the amounts specified for CONTRACTOR in the Supplementary General Conditions or insure the activities of its Subcontractors in CONTRACTOR’s own policy, in like amount.

5.2.9 Restriction on Start of Site Work - CONTRACTOR shall not perform any WORK unless CONTRACTOR has in full force and effect all required insurance. CONTRACTOR shall not allow any Subcontractor, Supplier or other organization to perform WORK unless the Workers’ Compensation requirements have been met.

5.2.10 Increasing Insurance Limits - OWNER may direct CONTRACTOR to increase insurance limits. CONTRACTOR will be entitled to a Contract Price adjustment based on the substantiated premium costs.

ARTICLE 6 -- CONTRACTOR’S RESPONSIBILITIES

6.1. Responsibility Of CONTRACTOR To Perform - Unless otherwise specified in the Contract Documents, CONTRACTOR shall furnish and assume full responsibility for all materials, equipment, labor, transportation, construction equipment and machinery, tools, appliances, fuel, power, light, heat, telephone, water, sanitary facilities and all other facilities and incidentals necessary for the furnishing, performance, testing, start-up and completion of the WORK. Such support that may need to be provided after normal working hours will be provided by CONTRACTOR at its expense.

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6.2 Labor, Materials and Equipment All materials and equipment to be incorporated into the WORK shall be of good quality and new, except as otherwise provided in the Contract Documents.

All warranties and guarantees specifically called for by the Specifications shall expressly run to the benefit of OWNER. If required by CONSTRUCTION MANAGER, CONTRACTOR shall furnish satisfactory evidence (including reports of required tests) as to the kind and quality of materials and equipment. All materials and equipment shall be applied, installed, connected, erected, used, cleaned and conditioned in accordance with the instructions of the applicable Supplier except as otherwise provided in the Contract Documents; but no provisions of any such instructions will be effective to assign to CONSTRUCTION MANAGER, any duty or authority to supervise or direct the furnishing or performance of the WORK.

6.2.1 The completed work shall include all necessary permanent Safety devices, such as machinery guards, emergency stops and similar Safety items required by OSHA, Cal-OSHA and other Federal, State and local health and Safety regulations. In addition, all equipment, products, components and/or package systems shall be designed, fabricated and installed in compliance with Seismic Zone 4 structural criteria. Further, any features of the work (including OWNER-selected equipment) subject to such Safety regulations and structural criteria shall be fabricated, furnished and installed in compliance with Seismic Zone 4 structural criteria. CONTRACTOR shall include provisions of this Article in his agreements with Subcontractors, Suppliers and manufacturers of equipment and/or products.

In selecting and/or accepting equipment and/or products for installation in the WORK, OWNER, OWNER and CONSTRUCTION MANAGER assume no responsibility for the injury, property damage or any other damages or claims resulting from failure of the equipment, products, components and/or package systems to comply with applicable Safety Codes or requirements, or the Safety requirements of a recognized agency, or failure due to manufacturer’s faulty design concepts, or Defective Work and materials. CONTRACTOR shall defend, indemnify and hold OWNER, OWNER and CONSTRUCTION MANAGER harmless against any and all liability, claims, suits, damages, costs or expenses caused or claimed to be caused in whole or in part by the negligence or willful misconduct of the construction CONTRACTOR connected with the WORK.

However, this indemnity will not extend to any loss, damage or expense caused by the established sole gross negligence or willful misconduct of OWNER or OWNER’s Agents, servants or independent contractors.

6.3 SUPERVISION, SUPERINTENDENCE AND QUALITY - CONTRACTOR shall supervise, inspect and direct the WORK competently and efficiently, devoting such attention thereto and applying such skills and expertise as may be necessary to perform the WORK in accordance with the Contract Documents. CONTRACTOR shall be solely responsible for the means, methods, techniques, sequences and procedures of construction and Safety precautions and programs incidental thereto. CONTRACTOR shall be responsible to see that the completed WORK complies accurately with the Contract Documents. CONTRACTOR is solely responsible for the quality of the WORK.

6.4 SUPERINTENDENT

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6.4.1 Written Designation of Superintendent - CONTRACTOR shall designate in writing and keep on the work site at all times during its progress a technically qualified, English-speaking superintendent and an alternate who are employees of CONTRACTOR and who shall not be replaced without written notice to OWNER and CONSTRUCTION MANAGER. The superintendent will be CONTRACTOR’s representative at the site and shall have authority to act on behalf of CONTRACTOR. All communications given to the superintendent shall be as binding as if given to CONTRACTOR. CONTRACTOR shall issue all its communications to OWNER and OWNER through CONSTRUCTION MANAGER.

6.4.2 Superintendent’s Presence at Site - CONTRACTOR’s superintendent or alternate shall be present at the site of the WORK at all times while work is in progress, and shall be available by phone for emergencies twenty-four (24) hours per Day, seven (7) Days per week. Failure to observe this requirement shall be considered suspension of the WORK by CONTRACTOR until such time as such the superintendent is again present at the site.

6.4.3 Removal of Superintendent - Upon written notice, OWNER may require replacement and removal from the WORK of CONTRACTOR’s superintendent with cause, in which case CONTRACTOR shall submit a replacement superintendent subject to approval by OWNER, at no increase in Contract Price or Contract Time. Repeated Safety violation on the job site will be sufficient grounds for directing such replacement.

6.5 LABOR - CONTRACTOR shall provide competent, suitably-qualified personnel to survey and lay out the WORK and perform construction as required by the Contract Documents. Any person employed who is found to be incompetent, intemperate, troublesome, disorderly or otherwise objectionable, or who fails or refuses to perform work properly, acceptably and safely, shall be immediately removed from the WORK by CONTRACTOR and not be reemployed on the WORK. CONTRACTOR shall furnish, erect, maintain and remove the construction plant and any temporary works as may be required. CONTRACTOR shall at all times maintain good discipline and order at the site and will not permit the use or consumption of drugs (illegal substances) or alcoholic beverages at the site.

6.5.1 No Additional Compensation for Overtime - Except as otherwise provided in this Article, CONTRACTOR shall receive no additional compensation for overtime work, (i.e., work in excess of eight (8) hours in any one (1) calendar Day or forty (40) hours in any one (1) calendar week) even though such overtime work may be required under emergency conditions and may be ordered by CONSTRUCTION MANAGER in writing. Additional compensation will be paid CONTRACTOR for overtime work only in the event extra work is ordered by CONSTRUCTION MANAGER, and the Change Order specifically authorizes the use of overtime work and then only to such extent as overtime wages are regularly being paid by CONTRACTOR for overtime work of a similar nature in the same locality.

6.5.2 Approval Required to Work Outside Normal Work Hours - Except in connection with the Safety or protection of persons or the WORK or property at the site or adjacent thereto, and except as otherwise indicated in the Contract Documents, all work at the site shall be performed during normal working hours, and CONTRACTOR will not permit overtime work or the performance of work on Saturday, Sunday or any holiday observed by OWNER without

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OWNER’s written consent. CONTRACTOR shall apply for this consent through CONSTRUCTION MANAGER. CONSTRUCTION MANAGER has to approve CONTRACTOR working Holidays, weekends or overtime. CONTRACTOR will be responsible for reimbursing OWNER for all cost to provide inspection services required to monitor WORK outside of normal working hours. CONTRACTOR will be charged for this actually incurred direct hourly cost plus OWNER-approved overhead cost plus OWNER-approved profit, and a deductive Change Order will be issued to cover this expense.

6.5.3 SUBCONTRACT LIMITATIONS - CONTRACTOR shall perform not less than twenty (20) percent of the WORK with its own forces without subcontracting. This requirement refers to the WORK whose value will not be less than twenty (20) percent of the Contract Price.

6.6 PROGRESS SCHEDULE - CONTRACTOR shall adhere to the progress schedule established in accordance with the General Requirements as it may be adjusted from time to time as provided below:

6.6.1 Non Impacting Adjustments - CONTRACTOR shall submit to CONSTRUCTION MANAGER for acceptance proposed adjustments in the progress schedule that will not change the Contract Time (or Milestones). Such adjustments will conform generally to the progress schedule then in effect and additionally will comply with any provisions of the General Requirements applicable thereto.

6.6.2 Revisions To Milestones - Proposed revisions in the progress schedule that will change the Contract Times (or Milestones) shall be submitted in accordance with the requirements of Article

12. Such adjustments may only be made by a Change Order in accordance with Article 12 of the General Conditions.

6.7 SUBSTITUTES OR “OR-EQUAL” ITEMS - Whenever an item of material or equipment is specified or described in the Contract Documents by using the name of a proprietary item or the name of a particular Supplier, the specification or description is intended to establish the type, function, appearance and quality required. Unless the specification or description contains or is followed by words reading that no like, equivalent or “or-equal” item or no substitution is permitted, other items of material or equipment or material or equipment of other Suppliers may be submitted to CONSTRUCTION MANAGER for review under the circumstances described below.

6.7.1 “Or-Equal” Items: If in CONSTRUCTION MANAGER’s sole discretion an item of material or equipment proposed by CONTRACTOR is functionally equal to that named and sufficiently similar so that no change in the WORK will be required, it may be considered by CONSTRUCTION MANAGER as an “or-equal” item, in which case review and approval of the proposed item may, in CONSTRUCTION MANAGER’s sole discretion, be accomplished without compliance with some or all of the requirements for approval of proposed substitute items. A proposed item of material or equipment will be considered functionally equal to an item so named if:
a. in the exercise of reasonable judgment CONSTRUCTION MANAGER determines that:

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i. it is at least equal in materials of construction, quality, durability, appearance, strength and design characteristics;
ii. it will reliably perform at least equally well the function and achieve the results imposed by the design concept of the WORK as a functioning whole; iii. it has a proven record of performance and availability of responsive service; and
b. CONTRACTOR certifies that, if approved and incorporated into the WORK:
i. there will be no increase in cost to OWNER or increase in Contract Time, and
ii. it will conform substantially to the detailed requirements of the item named in the Contract Documents.

6.7.2 Substitute Items
a. If in CONTRACT MANAGER’s sole discretion an item of material or equipment proposed by CONTRACTOR does not qualify as an “or-equal,” it will be considered a proposed substitute item.
b. CONTRACTOR shall submit sufficient information as provided below to allow CONTRACT MANAGER to determine that the item of material or equipment proposed is essentially equivalent to that named and an acceptable substitute therefore. Requests for review of proposed substitute items of material or equipment will not be accepted by CONTRACT MANAGER from anyone other than CONTRACTOR.
c. The procedure requirements for review by CONTRACT MANAGER will be as set forth in Paragraph 6.7.2.d, and as CONTRACT MANAGER may decide is appropriate under the circumstances.
d. CONTRACTOR shall make written application to CONTRACT MANAGER for review of a proposed substitute item of material or equipment that CONTRACTOR seeks to furnish or use. The application:
i. shall certify that the proposed substitute item will:

1. perform adequately the functions and achieve the results called for by the general design,

2. be similar in substance to that specified, and

3. be suited to the same use as that specified;
ii. will state:

1. the extent, if any, to which the use of the proposed substitute item will prejudice CONTRACTOR’s achievement of Substantial
Completion on time;

2. whether or not use of the proposed substitute item in the WORK will require a change in any of the Contract Documents (or in the provisions of any other direct contract with OWNER for other work on the Project) to adapt the design to the proposed substitute item; and

3. whether or not incorporation or use of the proposed substitute item in connection with the WORK is subject to payment of any license fee or royalty;
iii. will identify:

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1. all variations of the proposed substitute item from that specified, and

2. available engineering, sales, maintenance, repair and replacement services;
iv. and shall contain an itemized estimate of all costs or credits that will result directly or indirectly from use of such substitute item, including costs of redesign and claims of other contractors affected by any resulting change.

6.7.3 Substitute Construction Methods or Procedures: If a specific means, method, technique, sequence or procedure of construction is expressly required by the Contract Documents, CONTRACTOR may furnish or utilize a substitute means, method, technique, sequence or procedure of construction approved by CONTRACT MANAGER. CONTRACTOR shall submit sufficient information to allow CONTRACT MANAGER, in CONTRACT MANAGER’s sole discretion, to determine that the substitute proposed is equivalent to that expressly called for by the Contract Documents. The requirements for review by CONTRACT MANAGER will be similar to those provided in Paragraph 6.7.2.d.

6.7.4 Contract Manager’s Evaluation: CONTRACT MANAGER will be allowed a reasonable time within which to evaluate each proposal or submittal made pursuant to Paragraphs

6.7.2.d and 6.7.3. CONTRACT MANAGER may require CONTRACTOR to furnish additional data about the proposed substitute item. CONTRACT MANAGER will be the sole judge of acceptability. No “or equal” or substitute will be ordered, installed or utilized until CONTRACT MANAGER’s review is complete, which will be evidenced by either a Change Order for a substitute or an approved Shop Drawing for an “or equal.” CONTRACT MANAGER will advise CONTRACTOR in writing of any negative determination.

6.7.5 Special Guarantee: OWNER may require CONTRACTOR to furnish at CONTRACTOR’s expense a special performance guarantee or other surety with respect to any substitute.

6.7.6 Contract Manager’s Cost Reimbursement: CONTRACT MANAGER will record CONTRACT MANAGER’s costs in evaluating a substitute proposed or submitted by CONTRACTOR pursuant to Paragraphs 6.7.2.d and 6.7.3. Whether or not CONTRACT MANAGER approves a substitute item so proposed or submitted by CONTRACTOR, CONTRACTOR shall reimburse OWNER for the charges of CONTRACT MANAGER for evaluating each such proposed substitute. CONTRACTOR shall also reimburse OWNER for the charges of CONTRACT MANAGER for making changes in the Contract Documents (or in the provisions of any other direct contract with OWNER) resulting from the acceptance of each proposed substitute.

6.7.7 CONTRACTOR’s Expense: CONTRACTOR shall provide all data in support of any proposed substitute or “or-equal” at CONTRACTOR’s expense

6.8 PROJECT SITE COORDINATION

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6.8.1 Work By Others - CONTRACTOR shall be responsible for ascertaining the nature and extent of any simultaneous, collateral and essential work by others as described in the General Requirements.

CONTRACTOR shall provide staging areas and include work windows for work by others into the overall construction schedule. No additional working days will be allowed for CONTRACTOR’s failure to coordinate work by others.

6.8.2 Coordination Of Work - OWNER, CONTRACTOR and each of such workers, contractors and others shall cooperate to minimize interference.

6.8.3 Cost Of Coordination - CONTRACTOR shall include in its Bid all costs involved as a result of coordinating its WORK with others. CONTRACTOR will not be entitled to additional compensation from OWNER for damages resulting from such simultaneous, collateral and essential work. CONTRACTOR’s sole and exclusive remedy as a third party beneficiary to other prime contracts for damages caused by another contractor will be a direct action against the separate contractor. If necessary to avoid or minimize such damage or delay, CONTRACTOR shall redeploy its work force to other parts of the WORK.

6.8.4 Obligation to Provide Access - CONTRACTOR shall afford each other contractor who is a party to such a direct contract and each utility owner (or OWNER, if OWNER is performing the additional work with OWNER’s employees) proper and safe access to the site and a reasonable opportunity for the introduction and storage of materials and equipment and the execution of such work, and shall properly connect and coordinate work performed by others with their WORK as described in these Contract Documents.

6.8.5 CONTRACTOR shall do all cutting, fitting and patching of the WORK that may be required to make its several parts come together properly and integrate with such other work.

6.8.6 CONTRACTOR shall not endanger any work of others by cutting, excavating or otherwise altering their work and will only cut or alter their work with the written consent of CONSTRUCTION MANAGER and the others whose work will be affected.

6.9 COORDINATION WITH SUBCONTRACTORS AND SUPPLIERS

6.9.1 CONTRACTOR shall be solely responsible for scheduling and coordinating the WORK of Subcontractors, Suppliers and other persons and organizations performing or furnishing any of the WORK under a direct or indirect contract with CONTRACTOR. CONTRACTOR shall require all Subcontractors, Suppliers and such other persons and organizations performing or furnishing any of the WORK to communicate with CONSTRUCTION MANAGER through CONTRACTOR. All WPRL performed by a Subcontractor or Supplier will be pursuant to an appropriate agreement between CONTRACTOR and the Subcontractor or Supplier which specifically binds the Subcontractor or Supplier to the applicable terms and conditions of the Contract Documents.

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6.9.2 Subcontractor has no contractual relationship with OWNER. Nothing contained in this Article shall create any contractual relationship between any Subcontractor and OWNER or CONSTRUCTION MANAGER, nor relieve CONTRACTOR of any liability or obligation under the Agreement. CONTRACTOR shall include these General Conditions and the Supplementary General Conditions as a part of all its subcontract agreements.

6.9.3 DIVISION OF WORK - The divisions and sections of the Specifications and the identifications of any Drawings shall not control CONTRACTOR in dividing the WORK among Subcontractors or Suppliers or delineating the WORK to be performed by any specific trade.

6.10 PATENT FEES AND ROYALTIES - CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use in the performance of the WORK or the incorporation in the WORK of any invention, design, process, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product or device is specified in the Contract Documents for use in the performance of the WORK and if to the actual knowledge of OWNER, or DESIGN CONSULTANT, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by OWNER in the Contract Documents.

6.11 PERMITS - Unless otherwise provided in the Supplementary General Conditions, CONTRACTOR shall obtain and pay for all construction permits and licenses from the agencies having jurisdiction, including the furnishing of insurance and Bonds if required by such agencies.

The enforcement of such requirements under this Agreement shall not be made the basis for claims for additional compensation. OWNER shall assist CONTRACTOR, only when necessary, in obtaining such permits and licenses. CONTRACTOR shall pay all governmental charges and inspection fees necessary for the prosecution of the WORK, which are applicable at the time of opening of Bids. CONTRACTOR shall pay all charges of utility owners for connections to the WORK.

6.12 LAWS AND REGULATIONS - CONTRACTOR shall observe and comply with all Federal, State and local laws, ordinances, Codes, orders and regulations which in any manner affect those engaged or employed on the WORK, the materials used in the WORK or the conduct of the WORK. If any discrepancy or inconsistency should be discovered in this Agreement in relation to any such law, ordinance, code, order or regulation, CONTRACTOR shall immediately report the same in writing to CONSTRUCTION MANAGER.

6.13 TAXES - CONTRACTOR shall pay all sales, consumer, use and other similar taxes required to be paid in accordance with the Laws and Regulations of the place of the Project which are applicable during the performance of the WORK. OWNER is not exempt from sales tax.

6.14 Intentionally Omitted.

6.15 USE OF PREMISES

6.15.1 General - CONTRACTOR shall confine construction equipment, the storage of materials and equipment and the operations of workers to the Project site, the land and areas identified in

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and permitted by the Contract Documents and the other land and areas permitted by Laws and Regulations, rights-of-way, permits and easements as approved by CONSTRUCTION MANAGER. CONTRACTOR shall assume full responsibility for any damage to any such land or area, or to the owner or occupant thereof or of any land or areas contiguous thereto, resulting from the performance of the WORK. Should any claim be made against OWNER or CONSTRUCTION MANAGER by any such owner or occupant because of the performance of the WORK, CONTRACTOR shall promptly attempt to settle with such other party by agreement or otherwise resolve the claim through litigation.

6.16 PROJECT SITE MAINTENANCE AND INTERFERENCE WITH ADJACENT

PROPERTY

6.16.1 Cost of General Requirements in Contract Price - CONTRACTOR is obligated to comply with the General Requirements. All costs associated with this compliance are to be included in the basic Contract Price.

6.16.2 Vehicle Load Limits - When materials are transported in prosecuting the WORK, vehicles shall not be loaded beyond the loading capacity recommended by the manufacturer of the vehicle or prescribed by law or regulation. When it is necessary to cross curbs, sidewalks or drainage facilities CONTRACTOR shall protect them from damage.

6.16.3 Work Outside The Agreement Limits - Despite the designation of Contract Documents or the indication of temporary fences or barricades, the provisions of the Contract Documents governing certain portions of the WORK may require that certain operations be carried out beyond such limits. In those cases, trenching, utility work, site development and landscaping shall be scheduled so as to occasion a minimum of inconvenience or disturbance to or interference with the normal operation of the owner, abutters and the public. CONTRACTOR shall obtain CONSTRUCTION MANAGER’s prior approval and all necessary approvals from other agencies, public entities or the government for such operations, and prosecute such operations expeditiously and restore the premises affected to their original condition immediately upon completion of such operations, unless otherwise specified in the Contract Documents. All existing walks, roadways, paved or landscaped areas on which temporary driveways or walks are rerouted shall be restored to their original condition, immediately upon completion of those phases of the WORK, unless otherwise specified in the Contract Documents. Pumping, draining and control of surface and ground water shall be carried out so as to avoid endangering the WORK or any adjacent facility or property, or interrupting, restricting or otherwise infringing or interfering with its use.

6.16.4 Responsibilities For Damage - All damage, injury or loss to any persons or property caused, directly or indirectly, in whole or in part, by CONTRACTOR, any Subcontractor, Supplier or any other person or organization directly or indirectly employed by any of them to perform or furnish any of the WORK or anyone for whose acts any of them may be liable, shall be remedied by CONTRACTOR (except damage or loss attributable to the fault of Drawings or Specifications or to the acts or omissions of OWNER or CONSTRUCTION MANAGER or DESIGN CONSULTANT). CONTRACTOR’s duties and responsibilities for Safety and for protection of the WORK shall continue until such time as all the WORK is completed and CONSTRUCTION

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MANAGER has issued a notice to OWNER and CONTRACTOR in accordance with Article 14 that the WORK is complete.

6.17 CONTRACTOR’S DAILY REPORTS - CONTRACTOR shall complete a daily report indicating his total manpower for each construction trade, major equipment on site, each Subcontractor’s manpower, weather conditions and any other items required by CONSTRUCTION MANAGER. The daily report shall be completed on forms provided by CONSTRUCTION MANAGER and shall be submitted to CONSTRUCTION MANAGER by 9:00 a.m. the following work Day. The report should comment on the daily progress and status of the work within each major component of the WORK. These components will be determined by CONSTRUCTION MANAGER. Submitting acceptable daily reports as required is a precondition to approval of the monthly progress payment. However, these reports are not to be used to meet the notice requirements contained elsewhere in the General Conditions.

6.18 SAFETY

6.18.1 Safety Plan - CONTRACTOR will be required to comply with General Requirements provided by CONSTRUCTION MANAGER. CONTRACTOR shall submit a written Safety plan to CONSTRUCTION MANAGER prior to commencement of any work on site. CONTRACTOR shall be responsible for initiating, maintaining and supervising all Safety precautions and programs in connection with the WORK.

6.18.2 Safety Laws and Regulations - CONTRACTOR shall comply with all applicable Laws and Regulations of any public body having jurisdiction for the Safety of persons or property or to protect them from damage, injury or loss and shall erect and maintain all necessary safeguards for such Safety and protection. CONTRACTOR shall notify owners of adjacent property and of Underground Utilities when prosecution of the WORK may affect them and shall cooperate with them in the protection, removal, relocation and replacement of their property.

6.18.3 Safety Representative - CONTRACTOR shall designate a qualified and experienced Safety representative at the site whose duties and responsibilities shall be the prevention of accidents and the maintaining and supervising of Safety precautions and program. The Safety representative must meet the requirements stated in Supplemental General Conditions 6.18 “Safety.”

6.18.4 Safety Orders - CONTRACTOR shall have at the WORK site as applicable, copies or suitable extracts of: Construction Safety Orders, Tunnel Safety Orders and General Industry Safety Orders issued by the State Division of Industrial Safety. CONTRACTOR shall comply with provisions of these and all other applicable laws, ordinances and regulations.

6.18.5 Trench Shoring Plan - Before excavating any trench five (5) feet or more in depth, CONTRACTOR shall submit to OWNER a detailed plan showing the design of shoring, bracing, sloping or other provisions to be made for the workers’ protection from the hazard of caving ground during the excavation of such trench. If the plan varies from the shoring system standards, the plan shall be prepared by a California registered civil construction manager. No excavation shall start until CONSTRUCTION MANAGER has accepted the plan and CONTRACTOR has

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obtained a permit from the State Division of Industrial Safety. A copy of the permit shall be submitted to CONSTRUCTION MANAGER and posted at the site.

6.18.6 Use of Explosives - Explosives may be used only when authorized in writing by CONSTRUCTION MANAGER, or as otherwise stated in the Specifications. Explosives shall be handled, used and stored in accordance with all applicable regulations. CONSTRUCTION MANAGER’s approval of the use of explosives shall not relieve CONTRACTOR from liability for claims caused by blasting operations.

6.18.7 Hazardous Communication Program

6.18.7.1 Notification to employees is required when materials that contain hazardous substances or mixtures are required on the WORK. A material safety data sheet as described in section 5194 of the California Code of Regulations shall be requested by CONTRACTOR from the manufacturer of any hazardous product used.

6.18.7.2 Material usage shall be accomplished with strict adherence to California Division of Industrial Safety requirements and all manufacturer’s warnings and application instructions listed on the material safety data sheet and on the product container label.

6.18.7.3 CONTRACTOR shall be responsible for coordinating any exchange of material safety data sheets or other hazard communication information required to be made available to or exchanged between or among employers at the site in accordance with laws or regulations, with copies to CONSTRUCTION MANAGER.

6.18.7.4 Unsafe Products - CONTRACTOR shall notify CONSTRUCTION MANAGER if it considers a specified or required product or its intended usage to be unsafe. This notification must be given to CONSTRUCTION MANAGER prior to the product being ordered, or if provided by some other party, prior to the product being used or incorporated in the WORK.

6.18.8 Safety Measures In Bid - Payment for performing all work necessary to provide Safety measures shall be included in the prices bid for other items of work except where separate bid items for excavation Safety are provided.

6.18.9 Safety Reporting

6.18.9.1 Weekly First Aid Logs - This log should be delivered to CONSTRUCTION MANAGER three (3) Days after the weekly reporting period.

6.18.9.2 Accident and Injury Reports - This report should be delivered within twenty-four (24) hours of the injury or accident.

6.18.10 CONSTRUCTION MANAGER Safety Deficiency Report - CONTRACTOR is required to respond to this report within two (2) working Days explaining his corrective action and proposed schedule for this action.

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6.19 EMERGENCY - In emergencies affecting the Safety or protection of persons or the WORK or property at or adjacent to the site, CONTRACTOR, without special instruction or authorization from CONSTRUCTION MANAGER, is obligated to act to prevent threatened damage, injury or loss. CONTRACTOR shall give CONSTRUCTION MANAGER prompt written notice if CONTRACTOR believes that any significant changes in the WORK have resulted because of the action taken in response to an emergency. If it is determined by OWNER that a change is required, a change shall be authorized by Change Order.

6.20 SHOP DRAWINGS AND SAMPLES

6.20.1 After checking and verifying all field measurements and after complying with applicable procedures specified in the General Requirements, CONTRACTOR shall submit to CONSTRUCTION MANAGER for DESIGN CONSULTANT’s review all Shop Drawings in accordance with the accepted schedule of Shop Drawings Submittals specified in Bidding Documents section Bid Forms.

6.20.2 CONTRACTOR shall also submit to CONSTRUCTION MANAGER for review all Samples in accordance with the accepted schedule of sample Submittals specified in the General Requirements.

6.20.3 Before submittal of each Shop Drawing or Sample, CONTRACTOR shall have determined and verified all quantities, dimensions, specified performance criteria, installation requirements, materials, catalog numbers and similar data with respect thereto and reviewed or coordinated each Shop Drawing or Sample with other Shop Drawings and Samples and with the requirements of the WORK and the Contract Documents.

6.20.4 CONTRACTOR shall, at his own expense, furnish for review, and obtain approval by the CONSTRUCTION MANAGER, three (3) copies each of detailed submittals for materials, installation drawings, and construction procedures for the following:
 Any material which differ from that specified with a brand name on the Plans and in this Special Provisions
 Portland cement concrete design mix
 Construction and Demolition permit and proper disposal per specifications  Electrical shop drawings
 ICAPCD permits
 Lead and Asbestos testing and removal
 Plumbing
 Any other submittal called for in the technical specifications In addition, OWNER’s representative may, at his discretion, require shop drawings on other equipment or construction activities not included in the above list. OWNER’s representative shall have ten (10) working days to review and return the shop drawings to CONTRACTOR after receipt of said drawings.

6.21 SUBMITTAL ACCEPTANCE

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6.21.1 OWNER Review Scope and Limitation - OWNER will review and approve Shop Drawings and Samples. DESIGN CONSULTANT’s review and approval will be only to determine if the items covered by the Submittals will, after installation or incorporation in the WORK, conform to the information given in the Contract Documents and be compatible with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. DESIGN CONSULTANT’s review and approval will not extend to means, methods, techniques, sequences or procedures of construction except where a particular means, method, technique, sequence or procedure of construction is specifically and expressly called for by the Contract Documents or to Safety precautions or programs incident thereto. The review and approval of a separate item as such will not indicate approval of the assembly in which the item functions. CONTRACTOR shall make corrections required by DESIGN CONSULTANT, and shall return the required number of corrected copies of Shop Drawings and submit as required new Samples for review and approval. CONTRACTOR shall direct specific attention in writing to revisions other than the corrections called for by OWNER on previous Submittals.

6.21.2 CONTRACTOR’s Responsibility Not Relieved By Approval - CONSTRUCTION MANAGER’s and DESIGN CONSULTANT’s review and approval of Shop Drawings or Samples shall not relieve CONTRACTOR from responsibility for any variation from the requirements of the Contract Documents unless CONTRACTOR has in writing called DESIGN CONSULTANT’s attention to each such variation at the time of submission and OWNER has given written approval of each such variation by specific written notation thereof incorporated in or accompanying the Shop Drawing or Sample approval; nor will any approval by OWNER relieve CONTRACTOR from responsibility for complying with the requirements of Article 6.

6.22 COMPLIANCE WITH CONSTRUCTION MANAGER ADMINISTRATIVE PROCEDURES - CONTRACTOR is required to comply with all CONSTRUCTION MANAGER administrative procedures including but not limited to daily reports, Requests for Proposal, Safety reporting, notice requirements, payment procedures, submittal processing, attendance at weekly and special meetings and others designated by CONSTRUCTION MANAGER.

6.23 ASSIGNMENT OF CONTRACT - CONTRACTOR shall not assign, sublet, sell, transfer or otherwise dispose of the Contract Documents or any portion thereof, or its right, title or interest therein, or obligations thereunder, without the written consent of OWNER except as imposed by law. If CONTRACTOR violates this provision, the Agreement may be terminated at the option of OWNER. In such event, OWNER shall be relieved of all liability and obligations to CONTRACTOR and to its assignee or transferee growing out of such termination.

6.24 CONTINUING THE WORK DURING DISPUTES

6.24.1 CONTRACTOR shall carry on the WORK and adhere to the progress schedule during all disputes or disagreements with OWNER over any WORK scope, price or time dispute. No work shall be delayed or postponed pending resolution of any disputes or disagreements, except as CONTRACTOR and OWNER may otherwise agree in writing.

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6.24.2 If CONTRACTOR and OWNER are unable to reach agreement on Disputed Work, OWNER may direct CONTRACTOR to proceed with the WORK. Payment shall be as later determined by Article 16.

6.25 GENERAL WARRANTY AND GUARANTEE CONTRACTOR is responsible for providing warranty and guarantee in accordance with Article 13.

6.26 INDEMNIFICATION – In addition and complementary to, the Construction Services Agreement and to the fullest extent permitted by Laws and Regulations, CONTRACTOR shall indemnify, defend and hold harmless OWNER, CONSTRUCTION MANAGER, DESIGN CONSULTANT, their consultants, Sub-Consultants and the officers, directors, employees and agents of each and any of them against and from all claims and liability arising under, by reason of or incidentally to the Agreement or any performance of the WORK, but not from the sole gross negligence or willful misconduct of OWNER, CONSTRUCTION MANAGER and/or DESIGN CONSULTANT. Such indemnification by CONTRACTOR shall include but not be limited to the following:

6.26.1 CONTRACTOR Negligence - Liability or claims resulting directly or indirectly from the negligence or carelessness of CONTRACTOR, its employees or agents in the performance of the WORK, or in guarding or maintaining the same, or from any improper materials, implements or appliances used in its construction, or by or on account of any act or omission of CONTRACTOR, its employees or agents;

6.26.2 Claims By CONTRACTOR Employees - Liability or claims arising directly or indirectly from bodily injury, occupational sickness or disease or death of CONTRACTOR’s or Subcontractor’s own employees engaged in the WORK resulting in actions brought by or on behalf of such employees against OWNER, CONSTRUCTION MANAGER and/or DESIGN CONSULTANT;

6.26.3 Violation Of Law - Liability or claims arising directly or indirectly from or based on the violation of any law, ordinance, regulation, order or decree, whether by CONTRACTOR, its employees or agents;

6.26.4 Patent, Copyright Or Secret Process - Liability or claims arising directly or indirectly from the use or manufacture by CONTRACTOR, its employees or agents in the performance of this Agreement of any copyrighted or un-copyrighted composition, secret process, patented or unpatented invention, article or appliance, unless otherwise specifically stipulated in this Contract.

6.26.5 Breach Of Warranty - Liability or claims arising directly or indirectly from the breach of any warranties, whether express or implied, made to OWNER or any other parties by CONTRACTOR, its employees or agents;

6.26.6 Willful Misconduct - Liabilities or claims arising directly or indirectly from the willful misconduct of CONTRACTOR, its employees or agents; and,

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6.26.7 CONTRACTOR Reimbursement Of Cost - Liabilities or claims arising directly or indirectly from any breach of the obligations assumed herein by CONTRACTOR, CONTRACTOR shall reimburse OWNER, CONSTRUCTION MANAGER and OWNER for all costs and expenses, (including but not limited to fees and charges of engineers, architects and other professionals and court costs including all costs of appeals) incurred by said OWNER, CONSTRUCTION MANAGER and OWNER in enforcing the provisions of this Article.

6.26.8 Use Of Premises - Liabilities of claims arising directly or indirectly from the use of the premises by CONTRACTOR, its employees or agents.

6.26.9 No Indemnification Limitation - The indemnification obligation in Article 6 shall not be limited in any way by any limitation of the amount or type of damages, compensation or benefits payable by or for CONTRACTOR or any such Subcontractor or other person or organization under Workers’ Compensation acts, disability benefit acts or other employee benefit acts. However, the indemnification obligations of CONTRACTOR shall not extend to the liability of OWNER when caused by the professional negligence, errors or omissions.

6.26.10 OSHA/CalOSHA Citations - CONTRACTOR shall indemnify CONSTRUCTION MANAGER against fines, reasonable attorneys’ fees and defense costs resulting from citations issued to CONSTRUCTION MANAGER by either the Federal, State or local Safety enforcement agencies due to CONTRACTOR’s failure to abide by applicable Safety and health standards.

6.26.11 Survival of Obligations - All representations, indemnifications, warranties and guarantees made in, required by or given in accordance with the Contract Documents, as well as all continuing obligations indicated in the Contract Documents, will survive Final Payment, completion and acceptance of the WORK and termination or completion of the Agreement.

ARTICLE 7 -- WORK BY OTHERS AT THE SITE

7.1 OWNER’S RIGHT TO WORK AT SITE - OWNER may perform other work related to the Project at the site by OWNER’s own forces, have other work performed by utility owners, or let other direct contracts which may contain General Conditions similar to these. If the fact that such other work is to be performed was not noted in the Contract Documents, written notice thereof will be given to CONTRACTOR prior to starting any such other work.

7.2 CONTRACTOR REPORT ON DELAYS CAUSED BY OTHERS - If the proper execution or results of any part of CONTRACTOR’s work depends upon the work of any such other contractor or utility owner (or OWNER), CONTRACTOR shall promptly inspect and report to CONSTRUCTION MANAGER in writing any apparent delays, defects or deficiencies in such other work that render it unavailable or unsuitable for such proper execution and results.

CONTRACTOR’s failure to report such delays, defects or deficiencies in writing before commencement of the affected WORK will constitute an acceptance of the other work as fit and proper for integration with CONTRACTOR’s work except for latent defects and deficiencies in the other work.

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7.3 DAMAGE TO OTHERS CAUSED BY CONTRACTOR - If CONTRACTOR causes damage to the work, property or person of any other contractor employed by OWNER, or if any claim arising out of CONTRACTOR’s performance of the WORK by any other contractor is made against CONTRACTOR, by OWNER, CONSTRUCTION MANAGER, DESIGN CONSULTANT, any other contractor or any other person, CONTRACTOR shall be responsible to settle and shall promptly attempt to settle and resolve the dispute.

7.4 COORDINATION

7.4.1 Coordination Responsibilities - CONTRACTOR’s coordination responsibilities are in accordance with those found in Article 6 and in the described Supplementary General Conditions if applicable.

7.4.2 Coordination Delays - Should CONTRACTOR be delayed by OWNER, and such delay could not reasonably have been foreseen and prevented by CONTRACTOR, CONSTRUCTION MANAGER will determine the extent of the delay, the effect of the delay on the work as a whole, and any commensurate extension of time. CONSTRUCTION MANAGER shall arrange meetings with other contractors performing work on behalf of OWNER to plan coordination of construction activities. Any difference or conflict arising between CONTRACTOR and any other contractor employed by OWNER shall be submitted to CONSTRUCTION MANAGER for a decision in the matter. CONTRACTOR shall comply with reasonable direction from CONSTRUCTION MANAGER whose decision on coordination matters will be final.

7.5 Remedy For Delays By Others - By entering into this Agreement, CONTRACTOR acknowledges that there may be other contractors on the site whose WORK will be coordinated with that of his own. CONTRACTOR expressly warrants and agrees that he will cooperate with other contractors and will do nothing to delay, hinder or interfere with the WORK of other separate contractors, OWNER, CONSTRUCTION MANAGER or DESIGN CONSULTANT.

CONTRACTOR also expressly agrees that, in the event his work is hindered, delayed, interfered with or otherwise affected by a separate contractor, his sole remedy will be a direct action against the separate contractor. Except as otherwise provided by law, CONTRACTOR will have no remedy, and hereby expressly waives any remedy, against OWNER and/or CONSTRUCTION MANAGER or OWNER on account of delay, hindrance, interference or other event caused by a separate contractor.

7.6 Out Of Sequence Or Accelerated Work - When WORK is performed out of sequence and ahead of Interfacing Work, CONTRACTOR shall be responsible for taking reasonable steps to minimize damage or loss to the WORK which may be caused by others during the performance of their work, including but not limited to furnishing prompt written notice to CONSTRUCTION MANAGER and to the other contractors that WORK has been performed out of sequence and ahead of Interfacing Work.

7.7 NATIONAL LABOR RELATIONS BOARD REQUIREMENTS - CONTRACTOR’s Price shall include all costs associated with complying with any applicable National Labor Relations Board requirements for accessing the Project site.

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ARTICLE 8 -- OWNER’S RESPONSIBILITIES

8.1 GENERAL - OWNER has the final authority in all matters affecting the WORK.

8.2 COMMUNICATIONS - In general, OWNER and OWNER shall issue all written communications to CONTRACTOR through CONSTRUCTION MANAGER.

8.3 PAYMENTS - OWNER shall make payments to CONTRACTOR as provided in Article 14.

8.4 LANDS, EASEMENTS AND SURVEYS - OWNER’s duties in respect to providing lands and easements and providing engineering surveys to establish reference points are set forth in Article 4. OWNER shall identify and make available to CONTRACTOR copies of reports of explorations and tests of subsurface conditions at the site and in existing structures which have been utilized in preparing the Contract Documents as set forth in Article 4.

8.5 CHANGE ORDERS - OWNER shall execute Change Orders as indicated in Article 10.

8.6 INSPECTIONS AND TESTS - OWNER’s responsibility with respect to inspections, tests and approvals is set forth in Article 13.

8.7 SUSPENSION OF WORK - In connection with OWNER’s right to stop work or suspend work, see Articles 13 and 15.

8.8 TERMINATION OF AGREEMENT - Article 15 deals with OWNER’s right to terminate services of CONTRACTOR.

8.9 OWNER’S RESPONSIBILITY FOR UNDISCLOSED HAZARDOUS MATERIALS - OWNER’S responsibility with respect to undisclosed Asbestos, PCBs, Petroleum, Hazardous Waste or Radioactive Materials uncovered or revealed at the site is set forth in Article 4.

8.10 NO OWNER SUPERVISION INTENDED - Neither OWNER nor CONSTRUCTION MANAGER shall supervise, direct or have control or authority over, nor be responsible for, CONTRACTOR’s means, methods, techniques, sequences or procedures of construction or the Safety precautions and programs incident thereto, or for any failure of CONTRACTOR to comply with Laws and Regulations applicable to the furnishing or performance of the WORK. OWNER and CONSTRUCTION MANAGER will not be responsible for CONTRACTOR’s failure to perform or furnish the WORK in accordance with the Contract Documents.

ARTICLE 9 -- CONSTRUCTION MANAGER’S STATUS DURING CONSTRUCTION

9.1 GENERAL

9.1.1 OWNER’S REPRESENTATIVE - CONSTRUCTION MANAGER will be OWNER’s representative during the construction period. The duties and responsibilities and the authority of CONSTRUCTION MANAGER as CONSTRUCTION MANAGER during construction are set forth in the Contract Documents.

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9.1.2 Contract Documents Terms- Whenever in the Contract Documents the terms “as ordered,” “as directed,” “as required,” “as allowed,” “as reviewed,” “as approved,” or terms of like effect or import are used, or the adjectives “reasonable,” “suitable,” “acceptable,” “proper,” or “satisfactory” or adjectives of like effect or import are used to describe a requirement, direction, review or judgment of CONSTRUCTION MANAGER as to the WORK, it is intended that such requirement, direction, review or judgment will be solely to evaluate the WORK for compliance with the requirements of the Contract Documents, and conformance with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents, unless there is a specific statement indicating otherwise. The use of any such term or adjective shall not be effective to assign to CONSTRUCTION MANAGER any duty or authority to supervise or direct the performance of the WORK or any duty or authority to undertake responsibility contrary to the Article 9.

9.2 PRESENCE ON SITE - CONSTRUCTION MANAGER will be on site during construction to observe the progress, quantity and quality of the WORK and to determine, in general, if the WORK is proceeding in accordance with the Contract Documents. CONSTRUCTION MANAGER will not supervise, direct or have control over CONTRACTOR’s work.

9.3 CONTRACT DOCUMENT CLARIFICATIONS AND INTERPRETATIONS - CONSTRUCTION MANAGER will issue with reasonable promptness such written clarifications or interpretations of the requirements of the Contract Documents (in the form of Drawings or otherwise) as CONSTRUCTION MANAGER may determine necessary, which shall be consistent with or reasonably inferable from the overall intent of the Contract Documents. Such written clarifications and interpretations will be binding on OWNER and CONTRACTOR. If CONTRACTOR believes that a written clarification or interpretation justifies an adjustment in the Contract Price or the Contract Time and the parties are unable to agree to the amount or extent CONTRACTOR may request an adjustment in the Contract Price or an extension of the Contract Time therefore as provided in Articles 11 or 12.

9.4 AUTHORIZED VARIATIONS IN WORK - CONSTRUCTION MANAGER may authorize minor variations in the WORK, (not resulting in changes to the Contract Price or Contract Time), which are consistent with the intent of the Contract Documents. These may be accomplished by a Construction Manager Order. If CONTRACTOR believes that a Construction Manager Order justifies an increase in the Contract Price or an extension of the Contract Time, CONTRACTOR may request an adjustment in the Contract Price or an extension of the Contract Time therefore as provided in Articles 11 or 12. If CONTRACTOR proceeds with the directed work without making such a request or providing notice he will be presumed to be in agreement with CONSTRUCTION MANAGER’s determination that no change in price or time are involved, and will be considered to have waived his right to request an adjustment in Contract Time or Price.

9.5 ACCEPTANCE OF WORK - OWNER has the final authority in all matters affecting the WORK. Within the scope of the Agreement, CONSTRUCTION MANAGER has the authority to enforce compliance with the Plans and Specifications. CONTRACTOR shall promptly comply with instructions from CONSTRUCTION MANAGER or any authorized representative on all matters relating to quantities, the acceptability of material, equipment or work, the execution,

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progress or sequence of work and the interpretation of Specifications or Drawings. The decision of CONSTRUCTION MANAGER shall be precedent to any payment under the Agreement, unless otherwise ordered by OWNER. CONSTRUCTION MANAGER will recommend final acceptance to OWNER.

9.6 REJECTING DEFECTIVE WORK - CONSTRUCTION MANAGER will have authority to reject work which CONSTRUCTION MANAGER determines to be defective, or not in compliance with the Contract Documents or that OWNER or CONSTRUCTION MANAGER believes will not produce a completed Project or that will prejudice the integrity of the design concept of the completed Project as a functioning whole as indicated by the Contract Documents.

CONSTRUCTION MANAGER will also have authority to require special inspection or testing of the WORK as provided in Article 13, whether or not the WORK is fabricated, installed or completed.

9.7 CONTRACTOR SUBMITTALS - CONTRACTOR shall provide submittals in accordance with the SPECIAL PROVISIONS.

9.8 CHANGE ORDER - In connection with CONSTRUCTION MANAGER’s responsibilities as to Change Orders, see Articles 10, 11, and 12.

9.9 PAYMENTS In connection with CONSTRUCTION MANAGER’s responsibility as to Applications for Payment, see Article 14.

9.10 FINAL APPLICATION FOR PAYMENT - CONSTRUCTION MANAGER’s review of the Final Application for Payment and accompanying documentation and all maintenance and operating instructions, schedules, guarantees, Bonds and certificates of inspection, tests and approvals and other documentation required to be delivered by Article 14 will only be to determine generally that their content complies with the requirements of, and in the case of certificates of inspections, tests and approvals that the results certified indicate compliance with the Contract Documents.

9.11 DECISIONS ON DISPUTES

9.11.1 Interpreter Of Contract Documents - CONSTRUCTION MANAGER will be the initial interpreter of the requirements of the Contract Documents and judge of the acceptability of the WORK thereunder. Claims, disputes and other matters relating to the acceptability of the WORK, the interpretation of the requirements of the Contract Documents pertaining to the performance of the WORK and those claims with respect to changes in the Contract Price or Contract Time will be referred initially to CONSTRUCTION MANAGER. The process to be followed is described in Article 16.

9.12 CONSTRUCTION MANAGER LIABILITY FOR INTERPRETATION - When functioning as interpreter under Article 9, CONSTRUCTION MANAGER will not show partiality to OWNER, or CONTRACTOR and will not be liable in connection with any interpretation or decision rendered in good faith in such capacity. The rendering of a decision by CONSTRUCTION MANAGER pursuant to Article 9 will be a condition precedent to any exercise

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by CONTRACTOR of such rights or remedies as he may otherwise have under the Contract Documents or by laws or regulations in respect of any such Claim, dispute or other matter pursuant to Article 16.

9.13 LIMITATION ON CONSTRUCTION MANAGER’S RESPONSIBILITIES

9.13.1 No Duty Arising Out Of Act Or Decision - Neither CONSTRUCTION MANAGER’s authority to act under this Article 9 or other provisions of the Contract Documents, nor any decision made by CONSTRUCTION MANAGER in good faith either to exercise or not exercise such authority shall give rise to any duty or responsibility of CONSTRUCTION MANAGER to CONTRACTOR, any Subcontractor, any Supplier, any surety for any of them or any other person or organization performing any of the WORK.

9.13.2 No Supervision Role - CONSTRUCTION MANAGER will not supervise, direct, control or have authority over or be responsible for CONTRACTOR’s means, methods, techniques, sequences or procedures of construction, or the Safety precautions and programs incident thereto, or for any failure of CONTRACTOR to comply with Laws and Regulations, applicable to the performance of the WORK. CONSTRUCTION MANAGER will not be responsible for CONTRACTOR’s failure to perform the WORK in accordance with the Contract Documents.

9.13.3 CONTRACTOR Acts Or Omissions - CONSTRUCTION MANAGER will not be responsible for the acts or omissions of CONTRACTOR nor of any Subcontractor, Supplier or any other person or organization performing any of the WORK.

ARTICLE 10 -- CHANGES IN THE WORK

10.1 CHANGES REQUESTED BY CONTRACTOR

10.1.1 CONSTRUCTION MANAGER Approval - Changes in the Plans and Specifications, requested in writing by CONTRACTOR, which do not materially affect the WORK and which are not detrimental to the WORK or to the interests of OWNER, may be granted to facilitate the WORK, when approved in writing by CONSTRUCTION MANAGER. If the method will result in a cost saving, an appropriate deductive change will be required.

10.1.2 Specified Methods - Changes in specified methods of construction may be made at CONTRACTOR’s request when approved in writing by CONSTRUCTION MANAGER. If the method will result in a cost saving, an appropriate deductive change will be required.

10.1.3 No Right To Change - Nothing herein shall be construed as granting a right to CONTRACTOR to demand acceptance of such changes.

10.1.4 Request for Change Made in Good Faith - The request For change shall be made in good faith, and the amount requested accurately reflects the adjustments in Contract Price or Contract Time for which CONTRACTOR believes OWNER is liable, and covers all direct, supplemental, indirect, consequential, serial and cumulative costs and delays to which CONTRACTOR is entitled as a result of the change.

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10.2 OWNER’S RIGHT TO MODIFY WORK

10.2.1 Requirement To Implement Directed Change - Without invalidating the Agreement and without notice to any surety, OWNER may at any time or from time to time, order additions, deletions or revisions in the WORK; these will be authorized by a written Change Order prepared by CONSTRUCTION MANAGER and issued by OWNER. Upon receipt of any such document, CONTRACTOR shall promptly proceed with the work involved which will be performed under the applicable conditions of the Contract Documents (except as otherwise specifically provided).

10.2.2 Request For Proposal - When OWNER desires a change in the WORK, CONSTRUCTION MANAGER will issue a Request for Proposal to CONTRACTOR.

CONTRACTOR will be required to respond within the time indicated by CONSTRUCTION MANAGER or fifteen (15) Days, whichever is less. If CONTRACTOR fails to meet the submittal time required by this provision, CONTRACTOR will be solely liable for any delays or impacts caused by the delayed submittal of the proposal.

10.3 REQUIREMENT TO PROCEED WITH WORK - If OWNER and CONTRACTOR agree on the value of any work, and the amount of Contract Time that should be allowed as a result of CONTRACTOR’s response to a Request for Proposal, CONTRACTOR shall proceed as directed by OWNER so as to minimize the impact on and delays to the work pending the issuance of a Change Order. If however, OWNER and CONTRACTOR are unable to agree as to the extent of an increase or decrease in the Contract Price or an extension or shortening of the Contract Time that should be allowed as a result of CONTRACTOR’s response to a Request for Proposal, OWNER can direct CONTRACTOR to proceed on the basis of a price for the WORK as estimated by CONSTRUCTION MANAGER or time and materials so as to minimize the impact on and delays to the work, in accordance with Article 11.

10.4 WORK NOT IN CONTRACT - CONTRACTOR shall not be entitled to an increase in the Contract Price nor an extension of the Contract Time with respect to any work performed that is not required by the Contract Documents as amended, modified, supplemented by Change Order or Field Order, except in the case of an emergency and except in the case of uncovering work as provided in Article 13.

10.5 CHANGE ORDER PROCESS - OWNER and CONTRACTOR shall execute appropriate Change Orders covering:

10.5.1 OWNER Ordered Changes - Changes in the WORK which are ordered by OWNER pursuant to Article 10;

10.5.2 Changes Due To Defective Work - changes required because of acceptance of Defective Work under Article 13;

10.5.3 Mutually Agreed Price/Time Changes - changes in the Contract Price or Contract Time which are agreed to by the parties.

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10.6 NOTICE TO SURETY - If notice of any change is required by the provisions of any Bond to be given to a surety, the giving of any such notice will be CONTRACTOR’s responsibility, and the amount of each applicable Bond shall be adjusted accordingly.

10.7 ALLOWABLE QUANTITY VARIATIONS - In the event of an increase or decrease in bid item quantity of a unit priced item in the Contract Documents, the total amount of WORK actually done or materials or equipment furnished shall be paid for according to the unit price established for such work under the Contract Documents, wherever such unit price has been established; provided, that an adjustment in the unit price may be made for changes which result in an increase or decrease in excess of the allowable percentage variations as set forth by the Contract Documents.

ARTICLE 11 -- CHANGE OF CONTRACT PRICE (Change Orders, Field Orders and Work Orders)

11.1 CONTRACT PRICE CHANGE - The Contract Price may only be changed by a written Change Order.

11.2 METHODS FOR DETERMINING ADJUSTMENTS IN CONTRACT PRICE

11.2.1 Methods - The methods to be used to determine an adjustment in Contract Price necessitated by changes ordered or negotiated pursuant to these General Conditions or work covered by a Request for Proposal are limited to the following:

11.2.1.1 Where the work involved is covered by lump sum prices in the Contract Documents: on the basis of a lump sum negotiation;

11.2.1.2 Where the work involved is covered or is of the same character as Unit Price Work: by application of those unit prices to the quantities of the items involved (subject to the provisions covering Unit Price Work);

11.2.1.3 Where the work involved is not covered by either of the preceding methods: by mutual acceptance of a lump sum price negotiated on the basis of CONTRACTOR’s itemized estimate of the anticipated Cost of the WORK involved, determined as specified in this Article, and a contractor’s fee as provided in this Article.

11.2.1.4 Where the work involved is not covered by either of the first two (2) methods, and CONSTRUCTION MANAGER and CONTRACTOR cannot achieve agreement on the anticipated cost of the work involved and OWNER directs CONTRACTOR to proceed with the work with payments to be made on the basis of CONSTRUCTION MANAGER’s determination of the cost of the work involved: on a CONTRACTOR’s profit of eighty (80) percent of the amount allowed by this Article.

11.2.1.5 Where the work involved is not covered by either of the first two (2) methods, and OWNER directs CONTRACTOR to proceed with the work involved with payments to be made on the basis of actual costs: on the basis of the actual cost of the work involved, determined as

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specified in this Article, and a CONTRACTOR’s profit determined as fifty (50) percent of the amount allowed under this Article.

11.2.1.6 Where the work involved is not covered by any of the preceding methods, and when payment is to be determined by a court of competent jurisdiction, it is agreed that the actual cost method used for actual cost basis work shall be an appropriate method for determining the cost of the work involved.

11.2.2 CONTRACTOR’S Overhead and Profit Limitation - For all negotiated Change Orders the allowance for overhead and profit shall include full compensation for superintendence, insurance premiums, taxes, field office expense, extended overhead, home office overhead and all other items of expense or cost not included in the cost of labor, materials or equipment provided for in this Article. The allowance for overhead and profit will not exceed the following schedule:

Overhead Profit
Labor = Ten (10) percent Ten (10) percent
Materials = Ten (10) percent Five (5) percent
Equipment = Ten (10) percent Five (5) percent
To the sum of the costs and markups provided for in this Article, one (1) percent shall be added as compensation for bonding.

11.2.3 Subcontractor Mark Up - It is understood that labor, materials and equipment may be furnished by CONTRACTOR or by the Subcontractor on behalf of CONTRACTOR. When all or any part of the extra work is performed by a Subcontractor, the allowance specified herein shall be applied to the labor, materials and equipment costs of the Subcontractor, to which CONTRACTOR may add five (5) percent of the Subcontractor’s total cost for the extra work.

Regardless of the number of hierarchical tiers of Subcontractors, the five (5) percent increase above the performing Subcontractor’s total cost which includes the allowances for overhead and profit may be applied one (1) time only.

11.2.4 Equipment Rental Rates

11.2.4.1 All equipment rental rates shall be in accordance with the rental rate source identified in the Supplementary General Conditions based on a monthly rate for the equipment, and based on an equipment utilization of one hundred seventy-three (173) hours per month. CONTRACTOR will be permitted to charge only for the hours the equipment is actually used in the changed work.

11.2.4.2 Equipment Required Specifically for the Additional Work - Whenever possible, changed work will be accomplished using equipment available on-site or owned by CONTRACTOR. If no on-site equipment can be used, and a specific piece of equipment must be rented to be used exclusively for the changed work, the rental rate will be the invoiced rate.

11.3 COST OF WORK (BASED ON TIME AND MATERIALS

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11.3.1 General - The term “cost of work” means the sum of all costs necessarily incurred and paid by CONTRACTOR for labor, materials and equipment in the proper performance of extra work. Except as otherwise may be agreed to in writing by OWNER, such costs shall be in amounts no higher than those prevailing in the locality of the Project, shall include only the following items and shall not include any of the excluded costs itemized in this Article.

11.3.2 Labor - The costs of labor will be the actual cost substantiated by certified payroll for wages prevailing for each craft or type of workers performing the extra work at the time the extra work is done, plus employer payments of payroll taxes, Workers’ Compensation insurance, liability insurance, health and welfare, pension, vacation, apprenticeship funds and other direct costs resulting from Federal, State or local laws, as well as assessments or benefits required by lawful collective bargaining agreements. Labor costs for equipment operators and helpers shall be paid only when such costs are not included in the invoice for equipment rental. The labor costs for foremen shall be proportioned to all of their assigned work and only that applicable to extra work shall be paid. Non-direct labor costs including the superintendent, Project manager and other labor identified in 11.3.7.1 shall be considered part of the overhead markup identified in this Article.

11.3.3 Materials - The cost of materials reported shall be itemized at invoice or lowest current price at which materials are locally available and delivered to the job in the quantities involved, plus the cost of sales tax, freight, delivery and storage.

11.3.3.1 Trade discounts available to the purchaser shall be credited to OWNER notwithstanding the fact that such discounts may not have been taken by CONTRACTOR.

11.3.3.2 For materials secured by other than a direct purchase and direct billing to the purchaser, the cost shall be deemed to be the price paid to the actual supplier as determined by CONSTRUCTION MANAGER.

11.3.3.3 Payment for materials from sources owned wholly or in part by the purchaser shall not exceed the price paid by the purchaser for similar materials from said sources on extra work items or the current wholesale price for such materials delivered to the work site, whichever price is lower.

11.3.3.4 If in the opinion of CONSTRUCTION MANAGER the cost of material is excessive, or CONTRACTOR does not furnish satisfactory evidence of the cost of such material, then the cost shall be deemed to be the lowest current wholesale price for the total quantity concerned delivered to the work site less trade discount.

11.3.3.5 OWNER reserves the right to furnish materials for the extra work and no claim shall be allowed by CONTRACTOR for costs and profit on such materials.

11.3.4 Equipment - CONTRACTOR will be paid for the use of equipment at the rental rate listed for such equipment specified in the Supplementary General Conditions. Such rental rate will be used to compute payments for equipment whether the equipment is under CONTRACTOR’s control through direct ownership, leasing, renting or another method of acquisition. The rental

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rate to be applied for use of each item of equipment shall be the rate resulting in the least total cost to OWNER for the total period of use. If it is deemed necessary by CONTRACTOR to use equipment not listed in the publication specified in the Supplementary General Conditions, an equitable rental rate for the equipment will be established by CONSTRUCTION MANAGER.

CONTRACTOR may furnish cost data which might assist CONSTRUCTION MANAGER in the establishment of the rental rate.

11.3.4.1 All equipment shall, in the opinion of CONSTRUCTION MANAGER, be in good working condition and suitable for the purpose for which the equipment is to be used.

11.3.4.2 Before construction equipment is used on the extra work, CONTRACTOR shall plainly stencil or stamp an identifying number thereon at a conspicuous location, and shall furnish to CONSTRUCTION MANAGER, in duplicate, a description of the equipment and its identifying number and the scheduled work activities planned.

11.3.4.3 Unless otherwise specified, manufacturer’s ratings and manufacturer-approved modifications shall be used to classify equipment for the determination of applicable rental rates.

Equipment which has no direct power unit shall be powered by a unit of at least the minimum rating recommended by the manufacturer.

11.3.5 Rental Equipment

11.3.5.1 The rental time to be paid for equipment on the work site shall be the time the equipment is in productive operation on the extra work being performed and, in addition, shall include the time required to move the equipment to the location of the extra work and return it to the original location or to another location requiring no more time than that required to return it to its original location; except, that moving time will not be paid if the equipment is used on other than the extra work, even though located at the site of the extra work.

11.3.5.2 Rental time will not be allowed while equipment is inoperative due to breakdowns.

11.3.5.3 Computation Method - The following shall be used in computing the rental time of equipment on the work site.

11.3.5.3.1 When hourly rates are listed, any part of an hour less than thirty (30) minutes of operation shall be considered to be one-half (.5) hour of operation, and any part of an hour in excess of thirty (30) minutes will be considered one (1) hour of operation.

11.3.5.3.2 When daily rates are listed, any part of a Day less than four (4) hours operation shall be considered to be one-half (.5) Day of operation.

11.3.6 CONTRACTOR-Owned Equipment - For CONTRACTOR-owned equipment, the allowed equipment rental rate will be limited to the monthly equipment rental rate using a utilization rate of one hundred seventy-three (173) hours per month which is found in the Equipment Rental Rate Tables authorized by the Supplementary General Conditions for rental equipment.

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11.3.7 Special Services Special work or services are defined as that work characterized by extraordinary complexity, sophistication or innovation or a combination of the foregoing attributes which are unique to the construction industry.

11.3.7.1 When CONSTRUCTION MANAGER and CONTRACTOR determine that a special service is required which cannot be performed by the forces of CONTRACTOR or those of any of its Subcontractors, the special service may be performed by an entity especially skilled in the work. Invoices for special services based upon the current fair market value thereof may be accepted without complete itemization of labor, material and equipment rental costs, after validation of market values by CONSTRUCTION MANAGER.

11.3.7.2 All invoices for special services will be adjusted by deducting all trade discounts offered or available, whether the discounts were taken or not. In lieu of the allowances for overhead and profit specified in this Article, herein, an allowance of fifteen (15) percent will be added to invoices for special services.

11.3.8 Excluded Costs - The term “cost of the work” shall not include any of the following costs:

11.3.8.1 Overhead Cost - Payroll costs and other compensation of CONTRACTOR’s officers, executives, principals (of partnership and sole proprietorships) general managers, engineers, architects, estimators, attorneys, auditors, accountants, purchasing and contracting agents, timekeepers, clerks and other personnel employed by CONTRACTOR whether at the site or in CONTRACTOR’s principal office, a branch office or material yard and shop for general administration of the Work or not specifically covered by this Article all of which are to be considered administrative costs covered by CONTRACTOR’s allowance for overhead and profit.

11.3.8.2 Office Expense - Expenses of CONTRACTOR’s principal and branch offices.

11.3.8.3 Capital Expenses - Any part of CONTRACTOR’s capital expenses, including interest on CONTRACTOR’s capital employed for the WORK and charges against CONTRACTOR for delinquent payments.

11.3.8.4 Premiums - Cost of premiums for all Bonds and for all insurance whether or not CONTRACTOR is required by the Contract Documents to purchase and maintain the same.

11.3.8.5 Negligence - Costs due to the negligence of CONTRACTOR, any Subcontractor or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable, including but not limited to, the correction of Defective Work, disposal of materials or equipment wrongly supplied and making good any damage to property.

11.3.8.6 Other - Other overhead or general expense costs of any kind and the cost of any item not specifically and expressly included in this Article.

11.3.8.7 Small Tools - Cost of small tools valued at less than five hundred dollars ($500) and that remain the property of CONTRACTOR.

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