Agenda, first session — Garden Grove City Council, May 23, 2023 (part 2 of 2)

Bidder

Labor
Rates (Hourly)

Ford Explorer
Parts

Wrench Rebel
Collision $385.00 $4,352.71
Sharp Auto Body $582.00 $4,161.01
Caliber Bodyworks
Inc. $628.00 $4,195.89

All bids were found to be responsive. The bid results are a sampling of the labor rates (body rate, paint rate, frame rate, structural rate, finish rate, and mechanical rate) and Ford parts used in this contract. The requesting department anticipates increased volume over the next five (5) years. Due to availability issues obtaining quotes for the services provided under this contract, it is necessary to provide blanket purchase orders for each of the three (3) vendors, Wrench Rebel Collision, Sharp Auto Body and Caliber Bodyworks Inc.

FINANCIAL IMPACT
The three proposed contracts for auto parts and labor acquisition total $300,000.

This amount is included in the Fleet Management Fund's existing operating budget.

There is no impact to the General Fund.

RECOMMENDATION
It is recommended that the City Council:

Award contracts for miscellaneous auto parts and labor to: Wrench Rebel Collision, LLC in the amount of $125,000; Caliber Bodyworks Inc. dba Caliber Collision Centers in the amount of $125,000; and Wilson E. Guzman dba Sharp Auto Body and Paint in the amount of $50,000; with four option years for a total of five years for each contract, to be reviewed annually by the City Manager; and

Authorize the City Manager to execute the contracts, and option year contracts, on behalf of the City.

By: Steve Sudduth, Equipment Maintenance Supervisor
ATTACHMENTS:

Description Upload Date Type File Name
Auto Body Quotes 5/3/2023 Backup Material Auto_Body_P .O._3_Vendors_5.23.pdf Service contract Caliber 5/9/2023 Agreement PROFESSIONAL_SERVICES_CONTRACT- Caliber_Bodyworks_Inc_FY24.pdf
Service contract Wrench PROFESSIONAL_SERVICES_CONTRACT-

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•
•
Rebel 5/9/2023 Agreement Wrench_Rebel_Collision_FY24.pdf Service contract Sharp 5/9/2023 Agreement PROFESSIONAL_SERVICES_CONTRACT- Sharp_Autobody_FY24.pdf

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Wrench Rebel Collision
From Custom To Collision!
[email protected]
12796 Nutwood st, Garden Grove, CA 92840
Phone: (657) 667-0037
Preliminary Estimate
Customer: GARDEN GROVE, CITY OF
Written By: Steven Alarcon
Insured: GARDEN GROVE, CITY OF Policy#: QOUTE Oaim#:

Workfile ID:

PartsShare:

Federal ID:
f650c14d
7h22Xb
85-2079294
Job Number:

Type of Loss: Date of Loss: Days to Repair: 0
Point of Impact:

Owner:

GARDEN GROVE, CITY OF
Inspection Location:

Wrench Rebel Collision
12796 Nutwood st
Garden Grove, CA 92840
Repair Facility
(657) 667-0037 Business

VEHICLE
Insurance Company:
2022 FORD Police Interceptor Utility Vehicle AWD (Fleet) 4D UTV 6-3.3L Flex Fuel Gasoline Direct Injection VIN: 1FM5KBAB1NGA40516 Interior Color: Mileage In: Vehicle Out:

License: Exterior Color: Mileage Out:

State: Production Date: Condition: Job#:

TRANSMISSION CONVENIENCE FM Radio Xenon or L.E.D. Headlamps Automatic Transmission Air Conditioning Stereo SEATS
4 Wheel Drive Intermittent Wipers Search/Seek Cloth Seats POWER Tilt Wheel Auxiliary Audio Connection Bucket Seats Power Steering Cruise Control SAFETY Reclining/Lounge Seats Power Brakes Rear Defogger Drivers Side Air Bag WHEELS
Power Windows Message Center Passenger Air Bag Styled Steel Wheels Power Locks Steering Wheel Touch Controls Anti-Lock Brakes ( 4) PAINT Power Mirrors Rear Window Wiper 4 Wheel Disc Brakes Clear Coat Paint Power Driver Seat Telescopic Wheel Traction Control OTHER DECOR Oimate Control Stability Control Rear Spoiler
Dual Mirrors Backup Camera Front Side Impact Air Bags California Emissions Privacy Glass RADIO Head/Curtain Air Bags TRUCK
Overhead Console AM Radio Hands Free Device Trailer Hitch 4/4/2023 7:43:36 AM 438585 Page 1

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Preliminary Estimate
Customer: GARDEN GROVE, CITY OF Job Number:
2022 FORD Police Interceptor Utility Vehicle AWD (Fleet) 4D UTV 6-3.3L Flex Fuel Gasoline Direct Injection Line Oper Description Part Number Qty Extended Labor Paint Price$
1 FRONT LAMPS
2 Repl LT Headlamp assy w/o adaptive MB5Z13008V 1 1,666.67 Incl. headlamps level 2 headlamps
3 HOOD
4 Repl Hood (ALU) LB5Z16612A 1 891.48 1.1 3.0
5 Add for Clear Coat 1.2
6 Add for Underside(Complete) 1.5
7 Add for Clear Coat 0.3
8 FENDER
9 Repl LT Fender w/o HEV LB5Z16006A 1 291.58 2.7 2.0
10 Overlap Major Adj. Panel -0.4
11 Add for Clear Coat 0.3
12 Add for Edging 0.5
13 Add for Clear Coat 0.1
14 FRONT DOOR
15 Repl LT Door shell NB5Z78201258 1 781.95 5.5 3.4
16 Overlap Major Adj. Panel -0.4
17 Add for Clear Coat 0.6
18 REAR LAMPS
19 Repl LT Tail lamp assy level 1, 2 LBSZ13405F 1 721.03 0.3 SUBTOTALS 4,352.71 9.6 12.1

ESTIMATE TOTALS
Category Basis Rate Cost$
Parts 4,352.71
Body Labor 9.6 hrs @ $ 50.00 /hr 480.00
Paint Labor 12.1 hrs @ $ 50.00 /hr 605.00
Paint Supplies 12.1 hrs @ $ 40.00 /hr 484.00
Subtotal 5,921.71
Sales Tax $4,836.71 @ 8.7500 % 423.21
Grand Total 6,344.92
Deductible 0.00
CUSTOMER PAY o.oo
INSURANCE PAY 6,344.92
MyPricellnk Estimate ID / Quote ID:
1072525665741316096 / 121440193
xxxxxxx
xxxx
4/4/2023 7:43:36 AM 438585 Page 2

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II -- Wrench Rebel Collision
12796 Nutwood St. Garden Grove. CA 92840
Owner
Steven Alarcon
909-662-197 5
Quote table
City of Garden Grove Labor Rates
Paint 50.00 HR
Labor 50.00 HR
Structural Labor
Frame
Aluminum repairs
Mechanical
Towing

75.00HR

70.00 HR
125.00 HR
100.00 HR
per invoice
REFINISH MATERIALS 40/HR

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Sharp Automotive
[email protected]
10660 Stanford Ave, Garden Grove, CA 92840
Phone: (714) 636-6021
Preliminary Estimate
Customer: PUBUC WORKS CITY OF GARDEN GROVE
Insured: PUBLIC WORKS CITY OF

GARDEN GROVE
Policy#:

Written By: Kevin
Claim# :

Workfile ID:

PartsShare:

Federal ID:
5ad2e855
7k5Rft
47-2861833
Job Number:

Type of Loss: Date of Loss: Days to Repair: 3
Point of Impact: 12 Front
Owner : Inspection Location : Insurance Company:

PUBLIC WORKS CITY OF GARDEN GROVE
13802 NEWHOPE ST
GARDEN GROVE, CA 92843
(714) 741-5556 Cell
Sharp Automotive
10660 Stanford Ave
Garden Grove, CA 92840
Repair Facility
(714) 636-6021 Business

VEHICLE
2022 FORD Police Interceptor Utility Vehicle AWD (Fleet) 4D UTV 6-3.3L Flex Fuel Gasoline Direct Injection VIN: 1FM5K8AB1NGA40516 Inter ior Color: Mileage In:

License: Exterior Color: Mileage Out:

State: Production Date: Condition:

TRANSMISSION CONVENIENCE FM Radio
Automatic Transmission Air Conditioning Stereo
4 Wheel Drive Intermittent Wipers Search/Seek
POWER Tilt Wheel Auxiliary Audio Connection
Power Steering Cruise Control SAFETY
Power Brakes Rear Defogger Drivers Side Air Bag
Power Windows Message Center Passenger Air Bag
Power Locks Steering Wheel Touch Controls Anti-Lock Brakes ( 4) Power Mirrors Rear Window Wiper 4 Wheel Disc Brakes
Power Driver Seat Telescopic Wheel Traction Control
DECOR Climate Control Stability Contro l
Dual Mirrors Backup Camera Front Side Impact Air Bags
Privacy Glass RADIO Head/Curtain Air Bags
Overhead Console AM Radio Hands Free Device
5/2/2023 1:48: 25 PM 438360
Vehicle Out:

Job #:

Xenon or L.E.D. Headlamps
SEATS
Cloth Seats
Bucket Seats
Reclining/Lounge Seats
WHEELS
Styled Steel Wheels
PAINT
Clear Coat Paint
OTHER
Rear Spoiler
California Emissions
TRUCK
Trailer Hitch

Page 1 ends

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Preliminary Estimate
Customer: PUBLIC WORKS CITY OF GARDEN GROVE Job Number:
2022 FORD Police Interceptor Utility Vehicle AWD (Fleet) 4D UTV 6-3.3L Flex Fuel Gasoline Direct Injection Line Oper Description Part Number Qty Extended Labor Paint Price$
1 FRONT LAMPS
2 Repl LT Headlamp assy w/o adaptive MBSZ13008V 1 1,666.67 Incl. headlamps level 2 headlamps
3 HOOD
4 Repl Hood (ALU) LBSZ16612A 1 891.48 1.1 3.0
5 Add for Clear Coat 1.2
6 Add for Underside(Complete) 1.5
7 Add for aear Coat 0.3
8 # Add for Clear Coat 1 0.1
9 FENDER
10 Repl LT Fender w/o HEV LBSZ16006A 1 291.58 2.7 2.0
11 Overlap Major Adj. Panel -0.4
12 Add for Clear Coat 0.3
13 Add for Edging 0.5
14 Add for Clear Coat 0.1
15 FRONT DOOR
16 * Repl LT Outer panel LB527820201A 1 6.8 2.4
17 Overlap Major Adj. Panel -0.4
18 Add for Clear Coat 0.4
19 Add for Edging 0.5
20 Add for Clear Coat 0.1
21 Add for Inside 0.5
22 * Add for Clear Coat M
23 REAR LAMPS
24 Repl LT Tail lamp assy level 1, 2 LBSZ13405F 1 721.03 0.3 SUBTOTALS 4,161 .01 10.9 12.1

ESTIMATE TOTALS
Category Basis Rate Cost$
Parts 4,161.01
Body Labor 10.9 hrs @ $ 71.00 /hr 773.90
Paint Labor 12.1 hrs @ $ 71.00 /hr 859.10
Paint Supplies 12.1 hrs @ $SO.OD/hr 605.00
Subtotal 6,399.01
Sales Tax $4,766.01 @ 8.7500 % 417.03
Grand Total 6,816.04
MyPricelink Estimate ID / Quote ID:
1081244447372484608 / 122846062
5/2/2023 1:48:25 PM 438360 Page 2

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SHARP AUTO BODY
10660 STANFORD AVE
GARDEN GROVE CA 92840
2023 Rates for City of Garden Grove Vehicle Repairs
Paint Labor $71/Hr
Body Labor $71/Hr
Structural Labor $120/Hr
Frame Labor $120/Hr
Mechanical Labor $150/Hr
Refinish Materials $SO/Hr

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CALIBER -.

COLLISION

CALIBER - GARDEN GROVE

RESTORING THE RHYTHM OF YOUR LIFE
13051 Cannery Street, Garden Grove, CA 92844
Phone: (714) 537-7074
FAX: (714) 638-3452
Preliminary Estimate
Workflle ID:

Federal ID:

State EPA:

License Number:

BAR:
16625429
33-0730794
CAL000379896
302421
ARD299819
Customer: CITY OF GARDEN GROVE
Insured: CITY OF GARDEN GROVE
Written By~ Shaun Cho
Policy#: Claim #: PO# 8230011
Type of Loss:

Point of Impact:
owner:

CITY OF GARDEN GROVE
13802 NEWHOPE ST
PO BOX3070
GARDEN GROVE, CA 92843
(714) 741-5556 Day
Date of Loss:

Inspection Location:

CALIBER - GARDEN GROVE
13051 cannery street
Garden Grove, CA 92844
Repair Facility
(714) 537-7074 Business

VEHICLE
Days to Repair: 0
Insurance Company:

FLEET
2022 FORD Pollce Interceptor Utlllty Vehicle AWD (Fleet) 40 UTV 6·3.3L Flex Fuel Gasoline Direct Injection BLACK VIN: 1FM5K8AB1NGA40516 Interior Color: Mileage In: Vehicle Out:

License: Exterior Color: BLACK MIieage Out:

State: Production Date: Condition: Job#:

TRANSMISSION CONVENIENCE FM Radio Xenon or L.E.D. Headlamps Automatic TransmissiOn Air conditioning Stereo SEATS
4 Wheel Drive Intermittent Wipers Search/Seek Cloth Seats POWER TIit Wheel Auxlllary Audio Connection Bucket Seats Power Steering Cruise Control SAFETY Reclining/Lounge Seats Power Brakes Rear Defogger Drivers Side Air Bag WHEELS
Power Windows Message Center Passenger Afr Bag Styled Steel Wheels Power Locks Steering Wheel Touch Controls Anti-Lock Brakes (4) PAINT Power Mirrors Rear Window Wiper 4 Wheel Disc Brakes Clear Coat Paint Power Driver Seat Telescoplc Wheel Traction Control OTHER DECOR Cllmate Control Stability Control Rear Spoiler
Dual Mirrors Backup Camera Front Side Impact Air Bags callfomia Emissions Privacy Glass RADIO Head/Curtain Afr Bags TRUCK
Overhead Console AM Radio Hands Free Device Trailer Hitch 4/27/2023 10:35:27 AM 306875 Page 1

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Preliminary Estimate
Customer: CITY OF GARDEN GROVE
2022 FORD Police Interceptor Utility Vehicle AWD (Fleet) 40 UTV 6-3.3L Flex Fuel Gasoline Direct Injection BLACK Line Oper Description Part Number Qty Extended Labor Paint Price$
1 FRONT LAMPS
2 Repl LT Headlamp assy w/o adaptive MBSZ13008V 1 1,666.67 Incl. headlamps level 2 headlamps
3 HOOD -- --·------ -··-... ·-.. -
4 Repl Hood (ALU) LB5Z16612A 1 891.48 1.1 3.0
5 Add for Oear Coat 1.2
6 Add for Underslde(Complete) 1.5
7 FENDER
8 Repl LT Fender w/o HEV LBSZ16006A 1 291.58 2.7 2.0
9 overlap Major Adj. Panel -0.4
10 Add for aear Coat 0.3
11 Add for Edging 0.5
12 Add for Oear Coat 0.1 ~------~----- ---·~---------~---- ------------13 FRONT DOOR 14 Repl LT Outer panel LBSZ7820201A 1 625.13 6.8 2.4
15 overlap Major Adj. Panel ·0.4
16 Add for Clear Coat 0.4
17 Add for Edging o.s
18 Add for Oear Coat 0.1
19 Add for Inside 0.5
20 REAR LAMPS
21 Repl LT Tail lamp assy level 1, 2 LBSZ13405F 1 721.03 0.3 SUBTOTALS 4,195.89 10.9 11.7
EmMATE TOTALS
Category Basis Rate Cost$
Parts 4,195.89
Body Labor 10.9 hrs @ $ 82.00 /hr 893.80
Paint Labor 11.7 hrs @ $ 82.00 /hr 959.40
Paint Supplies 11.7 hrs @ $ 60.00 /hr 702.00
Subtotal 6,751.09
Sales Tax $4,897.89 @ 8.7500 % 428.57
Grand Total 7,179.66
MyPrlceUnk Estimate ID ' Quote IO:
1080891700311760896 / 122610687
4/27/2023 10:35:27 AM 306875 Page 2

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'
CALIBER COLLISION .. ,-.
f~ESTORING THE RHYTHM OF YOUR LIFE'
Garden Grove 0071
13051 Cannery Street
Garden Grove, CA 92844
(71.4} 537-7074

BODY SHOP LABOR RATES FOR

CITY OF GARDEN GROVE
Thursday, April 27, 2023
BODY LABOR 80
PAINT LABOR 80
STUCTURAL 121
FRAME 121

ALUMINUM N/A
MECHANICAL 166

TOWING N/A
REFINISH MATERIALS 60
1 PROFESSIONAL SERVICES AGREEMENT

THIS AGREEMENT is made this day of , 2023, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and Caliber Bodyworks, Inc. dba Caliber Collision Centers, herein after referred to as “CONTRACTOR”.

RECITALS

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove COUNCIL AUTHORIZATION, DATED _____________________.

2. CITY desires to utilize the services of CONTRACTOR to Provide all parts, materials and labor for the repair of various City vehicles per Attachment A.

3. CONTRACTOR is qualified by virtue of experience, training, education and expertise to accomplish services.

AGREEMENT

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Term and Termination Term and Termination The initial term of the agreement shall be from full execution through June 30, 2024, with an option to extend said agreement an additional four (4) fiscal years, for a total performance period of five fiscal (5) years. Option years shall be exercised one (1) fiscal year at a time, at the sole option of the CITY. This agreement may be terminated by the CITY without cause. In such event, the CITY will compensate CONTRACTOR for work performed to date in accordance with proposal which is attached as Attachment A and is hereby incorporated by reference. Contractor is required to present evidence to support performed work.

2. Services to be Provided. The services to be performed by CONTRACTOR shall consist of tasks as set forth in the Proposal. The Proposal is attached as Attachment A, and is incorporated herein by reference. The Proposal and this Agreement do not guarantee any specific amount of work.

3. Compensation. CONTRACTOR shall be compensated as follows:

3.1 AMOUNT. Total Compensation under this agreement shall not exceed (NTE) amount of One Hundred Twenty Five Thousand Dollars ($125,000.00), per fiscal year, payable in arrears and in accordance with proposal in Attachment “A”.

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2 3.2 Payment . For work under this Agreement, payment shall be made per invoice for work completed. Within 45 day of delivery of goods or completion of performance of services, CONTRACTOR must promptly render an invoice to CITY or payment may be significantly delayed. For extra work not a part of this Agreement, a written authorization by CITY will be required, and payment shall be based on schedule included in Proposal (Attachment A).

3.3 Records of Expenses. CONTRACTOR shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to CITY.

3.4 Termination. CITY and CONTRACTOR shall have the right to terminate this agreement, without cause, by giving thirty (30) days written notice of termination. If the Agreement is terminated by CITY, then the provisions of paragraph 3 would apply to that portion of the work completed.

4. Insurance requirements.

4.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the CITY of any material change, cancellation, or termination at least thirty (30) days in advance and provide a Waiver of Subrogation in favor of the City.

4.2 WORKERS COMPENSATION INSURANCE. During the duration of this Agreement, CONTRACTOR and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by law, if applicable.

4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain the following insurance for the duration of this Agreement:

(a) Commercial general liability in an amount of
$1,000,000.00 per occurrence ( claims made and
modified occurrence policies are not acceptable);
Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A -, Class VII or better, as
approved by the CITY.

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3 (b) Automobile liability in an amount of $1,000,000.00 combined single limit (claims made and modified
occurrence policies are not acceptable); Insurance
companies must be acceptable to CITY and have a Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.

(c) Garage Keeper Liability in an amount of $1,000,000.00 combined single limit: Insurance companies must be
acceptable to CITY and have a Best’s Guide Rating of A- Class VII or better, as approved by the CITY.

(d) Garage Liability in an amount of $1,000,000.00 combined single limit: Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A - Class VII or better, as approved by the CITY

An On-Going and Completed Operations Additional Insured Endorsement for the policy under section 4.3 (a) shall designate CITY, it’s officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorseme nt forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement for the policy under section 4.3 (b) shall designate CITY, it’s officers, officials, employees, agents, and volunteers as additional insureds for automobiles, owned, leased, hired, or borrowed by the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, it’s officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the CITY, it’s officers, officials, employees, agents, and volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it.

If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR.

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---
4 5. Non-Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable to CONTRACTOR in the event of any default or breach by CITY, or for any amount which may become due to CONTRACTOR.

6. Non-Discrimination. CONTRACTOR covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.

7. Independent Contractor . It is agreed to that CONTRACTOR shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.

8. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.

CONTRACTOR shall comply with, and shall be responsible for causing all contractors and subcontractors performing any of the work pursuant to this Agreement to comply with, all applicable federal and state labor standards, including, to the extent applicable, the prevailing wage requirements promulgated by the Director of Industrial Relations of the State of California Department of Labor. The City makes no warranty or representation concerning whether any of the work performed pursuant to this Agreement constitutes public works subject to the prevailing wage requirements.

9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice.

These addresses shall be used for delivery of service of process.

a. (Contractor)
Caliber Bodyworks, Inc. dba Caliber Collision Centers
Attention: Edgar Paredes, General Manager
13051 Cannery Street
Garden Grove, CA 92844

b. (Address of CITY) (with a copy to):

City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840

10. CONTRACTOR'S PROPOSAL. This Agreement shall include CONTRACTOR'S proposal or bid which shall be incorporated herein by reference. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

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5 11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement.

12. Familiarity with Work. By executing this Agreement, CONTRACTOR warrants that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at CONTRACTOR'S risk, until written instructions are received from CITY.

13. Time of Essence. Time is of the essence in the performance of this Agreement.

14. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONTRACTOR, its principals and employees were a substantial inducement for CITY to enter into this Agreement. CONTRACTOR shall not contract with any other entity to perform the services required without written approval of the CITY. This Agreement may not be assigned voluntarily or by operation of law, without the prior written approval of CITY. If CONTRACTOR is permitted to subcontract any part of this Agreement, CONTRACTOR shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed.

Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of CONTRACTOR. CITY will deal directly with and will make all payments to CONTRACTOR.

15. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.

16. Indemnification. To the fullest extent permitted by law, CONTRACTOR shall defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractors hired by CONTRACTOR in the performance of the Agreement.

The only exception to CONTRACTOR'S responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence, recklessness and/or wrongful conduct of CITY, or any of its elective or appointive boards, officers, agents, or employees.

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6 This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR.

17. Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefor by the Garden Grove City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the CITY.

\ \ \ \

(Agreement Signature Block on Next Page)

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7 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By:___________________________
City Manager
ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR"

Caliber Bodyworks, Inc.
dba Caliber Collision Centers

By: ___________________________

Name:__________________________

Title:___________________________

Date: __________________________

Tax ID No. ______________________

Contractor’s License: _____________

Expiration Date:_________________

If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

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1 PROFESSIONAL SERVICES AGREEMENT

THIS AGREEMENT is made this day of , 2023, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and Wrench Rebel Collision LLC, herein after referred to as “CONTRACTOR”.

RECITALS

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove COUNCIL AUTHORIZATION, DATED _____________________.

2. CITY desires to utilize the services of CONTRACTOR to Provide all parts, materials and labor for the repair of various City vehicles per Attachment A.

3. CONTRACTOR is qualified by virtue of experience, training, education and expertise to accomplish services.

AGREEMENT

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

3. Compensation. CONTRACTOR shall be compensated as follows:

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4. Insurance requirements.

4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain the following insurance for the duration of this Agreement:

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An On-Going and Completed Operations Additional Insured Endorsement for the policy under section 4.3 (a) shall designate CITY, it’s officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CI TY’s requirements, as approved by the CITY.

For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall b e primary insurance as respects CITY, it’s officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the CITY, it’s officers, officials, employees, agents, and volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it.

If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR.

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8. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.

9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice.

These addresses shall be used for delivery of service of process.

a. (Contractor)
Wrench Rebel Collision LLC
Attention: Steven Alarcon, Owner
12796 Nutwood Street
Garden Grove, CA 92840

b. (Address of CITY) (with a copy to):

City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840

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5 11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement.

13. Time of Essence. Time is of the essence in the performance of this Agreement.

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(Agreement Signature Block on Next Page)

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7 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By:___________________________
City Manager
ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR"
Wrench Rebel Collision LLC

By: ___________________________

Name:__________________________

Title:___________________________

Date: __________________________

Tax ID No. ______________________

Contractor’s License: _____________

Expiration Date:_________________

If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

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1 PROFESSIONAL SERVICES AGREEMENT

THIS AGREEMENT is made this day of , 2023, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and Wilson E. Guzman dba Sharp Auto Body & Paint, herein after referred to as “CONTRACTOR”.

RECITALS

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove COUNCIL AUTHORIZATION, DATED _____________________.

2. CITY desires to utilize the services of CONTRACTOR to Provide all parts, materials and labor for the repair of various City vehicles per Attachment A.

3. CONTRACTOR is qualified by virtue of experience, training, education and expertise to accomplish services.

AGREEMENT

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

3. Compensation. CONTRACTOR shall be compensated as follows:

3.1 AMOUNT. Total Compensation under this agreement shall not exceed (NTE) amount of Fifty Thousand Dollars ($50,000.00), per fiscal year, payable in arrears and in accordance with proposal in Attachment “A”.

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4. Insurance requirements.

4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain the following insurance for the duration of this Agreement:

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An On-Going and Completed Operations Additional Insured Endorsement for the policy under section 4.3 (a) shall designate CITY, it’s officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CIT Y’s requirements, as approved by the CITY.

If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR.

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8. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.

9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice.

These addresses shall be used for delivery of service of process.

a. (Contractor)
Wilson E. Guzman dba Sharp Auto Body & Paint
Attention: Wilson E. Guzman, Owner
10660 Stanford Avenue
Garden Grove, CA 92840

b. (Address of CITY) (with a copy to):

City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840

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5 11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement.

13. Time of Essence. Time is of the essence in the performance of this Agreement.

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(Agreement Signature Block on Next Page)

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7 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By:___________________________
City Manager
ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR"
Wilson E. Guzman dba
Sharp Auto Body & Paint

By: ___________________________

Name:__________________________

Title:___________________________

Date: __________________________

Tax ID No. ______________________

Contractor’s License: _____________

Expiration Date:_________________

If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

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Agenda Item - 5.b.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: William E. Murray
Dept.: City Manager Dept.: Public Works
Subject: Award a contract to Pavement
Coatings Co. for the 2023
Arterial Streets Slurry Seal
Project No.

CP-1355000.
(Cost: $4,643,865) ( Action
Item)
Date: 5/23/2023

OBJECTIVE
For City Council to award a contract to Pavement Coatings Co. for Arterial Streets Slurry Seal Project 2023, for the following street segments: Harbor Boulevard from Westminster Ave to Trask Ave; Clinton Street from Westminster Ave to Trask Ave; Chapman Avenue from 9th St to West St; Brookhurst Street from Trask Ave to Garden Grove Blvd; Brookhurst Street from Chapman Ave to Katella Ave; Westminster Avenue from Brookhurst St to Bowen St; Lampson Avenue from Valley View St to Springdale Street; West Street from Garden Grove Blvd to Lampson Ave; Nutwood Street from Garden Grove Blvd to Chapman Ave; and Nelson Street from Garden Grove Blvd to Chapman Ave (CP-1355000).

BACKGROUND
In December 2021, the City contracted a third party vendor, Infrastructure Management Services (IMS) to conduct an assessment of road surfaces within City limits. IMS completed its evaluation in September 2022 and shared its findings and recommendations on road conditions and repairs in the City’s 2022 Pavement Management Report (PMR). Street segments included in the Arterial Streets Slurry Seal Project 2023 were identified as needing various levels of repair based on their assigned condition indexes in the PMR. Each street will be addressed with different rehabilitation measures to properly manage the unique circumstances and will involve some or most of the following elements: removing and reconstructing failed pavement areas, cold milling, slurry seal/micro-surfacing, asphalt rubber aggregate membrane (ARAM), replacement of PCC curb and gutter, cross gutter, splash pad, driveway, alley apron, sidewalk, bus pad and wheel chair ramps, adjustment of utility covers to finish grade, catch basin inlet screens, CCTV cameras, restoration of traffic striping, signing, pavement marking and markers, reestablishment of centerline ties and monuments.

DISCUSSION

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Staff solicited bids for this project pursuant to Municipal Code Section 2.52.010. Two (2) qualified bids were received at the City Clerk's office by 11:00 a.m. on May 10, 2023. The lowest qualified contractor bid was from Pavement Coatings Co., with a total bid of $4,643,865. This bid amount is within the current project budget. The licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order.

The anticipated contract schedule is as follows:

Award Contract - May 23, 2023 Begin Construction (estimated) - June 19, 2023
Complete Construction (estimated) - November 7, 2023

FINANCIAL IMPACT
The Arterial Streets Slurry Seal Project 2023 is included in the Fiscal Year 2022-23 adopted Capital Improvement Plan budget and are funded by Measure M2 Local Fair Share, Gas Tax, and Red Light Camera fees, and the General Fund. No additional appropriation is needed to approve the contract.

RECOMMENDATION
It is recommended that the City Council:

Award a contract to Pavement Coatings Co., in the amount of $ 4,643,865 for Arterial Streets Slurry Seal Project 2023, for the following street segments:

Harbor Boulevard from Westminster Ave to Trask Ave; Clinton Street from Westminster Ave to Trask Ave; Chapman Avenue from 9th St to West St; Brookhurst Street from Trask Ave to Garden Grove Blvd; Brookhurst Street from Chapman Ave to Katella Ave; Westminster Avenue from Brookhurst St to Bowen St; Lampson Avenue from Valley View St to Springdale Street; West Street from Garden Grove Blvd to Lampson Ave; Nutwood Street from Garden Grove Blvd to Chapman Ave; and Nelson Street from Garden Grove Blvd to Chapman Ave; and

Authorize the City Manager to execute an agreement with Pavement Coatings Co., and make minor modifications as appropriate thereto, on behalf of the City.

By: Nick Hsieh, P.E. Associate Engineer
ATTACHMENTS:

Description Upload Date Type File Name
BID SUMMARY 5/12/2023 Backup Material 1_-_Bid_Summary_Sheet.pdf AGREEMENT 5/12/2023 Agreement 2_-
_Construction_Agreement.pdf

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•
•

ATTACHMENT 1

CITY OF GARDEN GROVE

PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION

BID SUMMARY SHEET

FOR

ARTERIAL STREETS SLURRY SEAL PROJECT 2023

BID OPENING: DATE: MAY 10, 2023 TIME: 11:00 A.M.

ENGINEER’S ESTIMATE: $ 4,983,775.00

Bidder’s Name Total Bid % Under/Over
Engrs. Est
Pavement Coatings, Jurupa Valley $4,643,865.00 6.82% Under American Asphalt South, Riverside $4,865,524.00 2.37% Under

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- 40 –

C O N S T R U C T I O N A G R E E M E N T

PAVEMENT COATINGS CO.

THIS AGREEMENT is made this 23rd day of May, 2023 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and P A V E M E N T C O A T I N G S C O ., hereinafter referred to as ("CONTRACTOR").

RECITALS:

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove City Council Authorization dated May 23 , 2023 .

2. CITY desires to utilize the se rvices of CONTRACTOR to furnish material, equipment, and labor for the ARTERIAL STREETS SLURRY SEAL PROJECT 2023. PROJECT NO.

CP 1355000

3. CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish services.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, condition s and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR'S investigation of all such matters and is in no way relying upon any opinions or repr esentations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specifications, and CONTRACTOR's Proposal, are inco rporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its subcontractors, if any, wil l be and are bound by any and all of said Contract Documents insofar as they relate i n any part or in any way, directly or indirectly, to the work covered by this Contract.

"Project" as used herein defines the entire scope of the work covered by all the Contract Documents. Anything mentioned in the Specifications and not in dicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to CITY’S Engineer, witho ut whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTR ACTOR'S own risk and expense. The decision of the Engineer shall be final.

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SECTION 5 - AGREEMENT (Continued)
- 41 -

5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labo r and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said claim s, CITY may settle them directl y and deduct the amount of payments from the Contract price and any amounts due to CONTRAC TOR. In the event CITY receives a stop notice from any laborer or material suppli er alleging non-payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs a nd expenses incurred relating thereto, including but not limited to administrative and legal fees.

5.3 Project. The PROJECT is described as: ARTERIAL STREETS SLURRY SEAL PROJECT 2023, PROJECT NO. CP 1355000.5.4 Plans and Specificatio ns. The work to be done is shown in a set of detailed Plans and Specifi cations entitled:

ARTERIAL STREETS SLURRY SEAL PROJECT 2023, PROJECT NO. CP 13550 00.

Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. The work to be done must also be in accordance with the General Provisions, Standard Specifications and Standard Plans of the CITY, which a re also incorporated herein and referred to by, reference.

5.5 Time of Commencement and Completion. CONTRACTOR shall have ten (10) working days from the award of the Contract to execute the Contract and supply the CITY with all the documents and information required by the Instructions to B idders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed contract and all of the other properly drafted and executed documents and information, i t m a y i s s u e a N o t i c e t o Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to p rovide the required documents and information within the ten (10) city working days, the CITY may then rescind the award of the Contract and then award the Contract to the ne xt lowest responsive and responsible bidder.

The Contract time shall begin on June 19, 2023. Upon receipt of the Notice to Proceed, on June 5, 2023, the CONTRACTOR agrees to submit shop drawings within fourteen (14) calendar days. The CONTRACTOR sha ll diligently prosecute the work within 100 (One Hundred) working days to completion as required per the plans and specifications excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.

5.6 Time is of the Essence. Time is of the essence of this Contract.

Contractor shall have fourteen (14) calendar days f rom the award of the Contract t o execute the Contract and supply CITY with all of the documents and information required by the Instruction to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and executed documents and information, it may issue a Notice to Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the fourteen (14) calendar days, the CIT Y may then rescind the award of the Contract and then award the Contract to the next l owest responsible and responsive bidder.

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SECTION 5 - AGREEMENT (Continued)
- 42 -
As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the work covered by this Contract with that of all other CONTRACTORs, subcontractors and of the CITY, in a manner that will facilitate the efficient complet ion of the entire work in accor dance with Section 5.5 herein.

CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time or order in which the various portions of the work shall be installed or the priority of the work of other subcontractor s, and, in general, all matters representing the timely and orderly conduct of the work of CONTRACTOR on the premises.

5.7 Excusable Delays. CONTRACTOR shall be excused for any delay in the prosecution or completion of the Project caused by acts of God; inclement weat her; damages caused by fire or other casualty for which CONTRACTOR is not responsible; any act of negligence or default of CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; combined action of the workers in no way caused by or resulting from default or collusion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR'S reasonable control.

CITY shall extend the time fixed in Section 5.5 herein for completion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written request to CITY for such time extension within fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.

No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inaction of CONTRACTOR and that CON TRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determi ned in accordance with SPECIAL PROVISIONS and Section 3-3 of the Standard Specificatio n s f o r P u b l i c W o r k s Construction 2006 Edition (GREEN BOOK). The CITY’S decision wi ll be conclusive on all parties to this Contract.

5.8 Extra Work. The Contract price includes compensation for all work perform ed by CONTRACTOR, unless CONTRACTOR obtains a written change order si gned by a designated representative of CITY specifying the exact nature o f the extra work and the amount of extra compensation to be paid all as more particularl y set forth in Section 5.9 hereof.

CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final.

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SECTION 5 - AGREEMENT (Continued)
- 43 -

5.9 Changes in Project.

5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work within the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.

If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall s ubmit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request.

Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’S failur e to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change.

The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.

5.9.2 A change may also be any other conflict, difficulty or issue w hich the CONTRACTOR believes caused any change to the CONTRACTOR’S costs o r project schedule, provided CONTRACTOR gives the CITY written no tice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analy ze the request. The notice shall also state the date the CONTRACTOR became aware of the issue, circumstances and source of the issue and that CONTRACTOR regards the issue as a change order. Said written notice shall be delivered to the CITY via certified mail within twenty (20) days of CONTRACTOR’S first notice of th e issue.

CONTRACTOR’S failure to submit the notice, which includes the written request for equitable adjustment within the required twenty (20) days s hall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shall provide a written r esponse within thirty (30) days of receipt of the request either approving or denying the request.

5.9.3 Except as provided in this Section 5.9, no order, statement o r conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.

5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs

5.9.1 and 5.9.2. In the case of defective specifications for w h i c h t h e C I T Y i s responsible, the equitable adjustment shall include any increas ed direct cost CONTRACTOR reasonably incurred in attempting to comply with tho se defective specifications.

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SECTION 5 - AGREEMENT (Continued)
- 44 -

5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjustment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement to the CITY setting forth the general nature and monetary exten t of such claim.

The CITY may extend the 30-day period. CONTRACTOR’S failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.

5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be al lowed if made after final payment under this Agreement.

5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY ma y require without nullifying t his Contract.

CONTRACTOR shall adhere strictly to the Plans and Specification s unless a change there from is authorized in writing by the CITY. Under no condition shall CONTRACTOR make any changes to the Project, either in additions o r deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CITY. CONTRACTOR shall submit immedi ately to the CITY written copies of its firm's cost or credit proposal for c hange in the work.

Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefor shall be submitted without d elay by CONTRACTOR to CITY.

5.10 Liquidated Damages for Delay. The parties agree that if the total work called for under this Contract, in all parts and requirements, is not completed within the time specified in Section 5.5 herein, plus the allowance made for delays or exten sions authorized under Sections 5.7, 5.8 and 5.9 herein, the CITY will sustain damage which would be extremely difficult and impractical to ascertain. The parties therefor agree that CONTRACTOR will pay to CITY the sum of One Thousand Dollars ($1,000.00) per day for each and every calendar day during which completion of the Project is so delay ed. CONTRACTOR agrees to pay such liquidated damages and further agrees that CITY may offset the amount of liquidated damages from any monies due or that may become due C ONTRACTOR under the Contract.

5.11 Contract Price and Method of Payment. CITY agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any subsequent additions or deductions as provided in approved change orders, the sum of Four Million, Six Hundred For ty Three Thousand, Eight Hundred and Sixty Five Dollars and Zero Cents ($ 4,643,865.00) as itemized in the bid proposal.

Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent ( 5%) of the amount of each such progress estimate and material cost until 30 days after the recordation of the Notice of Completion.

Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that th e work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial

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SECTION 5 - AGREEMENT (Continued)
- 45 -
payments of the Contract price shall not be considered as an acceptance of any part of the work.

5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to California Public Works Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution i n order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.

5.13 Completion. Within 10 days after the contract completion date of the Proj ect, CONTRACTOR shall file with the CITY’S Engineer its affidavit st ating that all workers and persons employed, all firms supplying materials, and all subcon tractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be set forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CITY ma y require affidavits or certificates of payment and/or releases from any subcontractor, laborer or material supplier.

5.14 CONTRACTOR 's Employees Compensation

5.14.1 General Prevailing Rate. CITY has ascertained CONTRACTOR shall comply with all applicable requirements of Division 2, Part 7, Chapter 1 of the California Labor Code and all applicable federal requirements r especting the payment of prevailing wages. If there is a difference between t he minimum wage rates predetermined by the Secretary of Labor and the prevailing wage rates determined by the Director of the Department of Industrial Relations (DIR) for similar classifications of labor, the CONTRACTOR and its Subcon tractors shall pay not less than the higher wage rate. The DIR will not accept lower State wage rates not specifically included in the Federal minimum wage det erminations. This includes "helper" (or other classifications based on hours of e xperience) or any other classification not appearing in the Federal Wage determinations. Where Federal wage determinations do not contain the State wage rate determination otherwise available for use by the CONTRACTOR and Subcontractor s, the CONTRACTOR and its Subcontractors shall pay not less than the F ederal Minimum wage rate which most closely approximates the duties of the employees in question."

5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY, forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1777 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California.

5.14.3 Apprentices. Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices is applicable to this Contract and the CONTRACTOR shall comply therewith; provided, however, that this requirement shall not apply if and/or to the extent that t he Contract of the general CONTRACTOR, or the contracts of specialty contractors n ot bidding for work through a general or prime contractor involve less than thirty thousand dollars ($30,000.00).

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SECTION 5 - AGREEMENT (Continued)
- 46 -

5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not r equire more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California and shall forfeit to the CITY as a penalty, the s um of twenty-five Dollars ($25.00) for each worker employed in the execution of t his Contract by CONTRACTOR or any subcontractor for each calendar day during wh ich any worker is required or permitted to labor more than eight (8) ho urs in any one calendar day and forty (40) hours in any one week in violation of said Article.

CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.

5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each da y and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its subcontractors does the same. The applicable CONTR ACTOR or subcontractor or its agent having authority over such matters shall certify all payroll records as accurate. CONTRACTOR further agrees that its payrol l records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, an d the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. CONTRACTOR shall comply with all of the provisions of Labor Code Section 1776, and shall submit payroll records to th e Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks f or l a bo r s, every two weeks to the Engineer. Certified payroll and cancel led checks submittals are due one month after start of construction and ev ery two weeks thereafter. If the certified payroll and cancelle d checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working days or contract work must cease. The CITY will not be responsible for any delay or acceleration charges or any incurred costs or damages as a result of the work stoppage due to CONTRACTOR’s failure to comply. Work shall be ceased in an orderly, safe fashion with all vehicle access restored. Should this not occur, CITY will correct the deficiencies and deduct the cost from funds du e to the CONTRACTOR. In addition, no progress payment shall be made until the copies of certified payroll reports and cancelled checks are submitted.

5.14.6 Contractor Registration. CONTRACTOR and its subcontractors must be registered with the California Department of Industrial Relations pursuant to Labor Code Section 1725.5. This Agreement shall not be effective unti l CONTRACTOR provides proof of registration to the CITY.

5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or oth er regulation promulgated pursuant to Labor Code Section 1771.4(a) (2).

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SECTION 5 - AGREEMENT (Continued)
- 47 -

5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

5.15 Surety Bonds. CONTRACTOR shall, prior to entering into performance of this Agreement, furnish a performance bond, on the CITY's bond form in the amount of one hundred percent (100%) of the Contract price, to guarantee the faithful performance of the work, and a payment bond, on the CITY's form in the amount of o ne hundred percent (100%) of the Contract price, to guarantee payment of all claim s for labor and materials furnished. Bonds submitted on any form other than the CITY's f orm will be rejected. The required bonds shall be from a surety licensed to do business in the State of California and with a current A.M. Best's rating of A-, VII. This Contract shall not become effective until such bonds are supplied and approved by the CITY."

5.16 Insurance.

5.16.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsemen ts have been received and approved by the CITY. All insurance required by this Agreement shall contain a statement of obligation on the part of the carr ier to notify the city of any material change, cancellation, or termination at least thirty (30) days in advance. A waiver of subrogation shall be provided by the insurer for each policy waiving subrogation against CITY, its officers, officials, emp loyees, agents, and volunteers for this contract and all public agencie s from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, Claims made and modified occurrence policies shall not be accepted for any policy, unless otherwise indicated. All Subcontractor s shall be required to provide and maintain the same insurances as required of CONTRACTOR under this contract. CONTRACTOR shall be required t o collect and maintain all required insurances from all Subcontractors.

5.16.2 CONTRACTOR is aware of the provisions of Section 3700 of the La bor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commenci ng the performance of the work of this Contract.

5.16.3 CONTRACTOR and all Subcontractors shall carry workers' compensation insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, and shall issue a waiver of subrogation.

5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:

Additional Insured Endorsements, ongoing and products-completed operations, for the Commercial General Liability policy , including mobile equipment and not excluding XCU and on the Contractors’ Pollution Liability policy, if available. Endorsements shall designate CITY, its officer s, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and

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employees, as determined by the CITY, as additional insureds for liability arising out of work or operations performed by or on behalf of the CONT RACTOR.

CONTRACTOR shall provide to CITY proof of insurance and endorse ment forms that conform to CITY’s requirements, as approved by the CITY (a t least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 28; and CG 20 37 forms if later revisions used). Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide r ating of A-, class VII or better, as approved by CITY.

Contractor’s Pollution Legal Liability : Insurance companies must be acceptable to City and have a Best’s Guide Rating of A- Class V II or better, as approved by Authority. If policy is written on a claims-made form:
1) The retroactive date must be shown, and must be before the date of the contract or the beginning of contract work.
2) Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of the c ontract work.
3) If coverage is canceled or non-renewed, and not replaced with a nother claims-made policy with a retroactive date prior to the contract effective date, the CONTRACTOR must purchase an extended period coverage for a minimum of three (3) years after completion of the contract work. 4) A copy of the claims reporting requirements must be submitted t o the CITY for review.

Automobile Liability policy and shall designate CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, as additional insureds fo r automobiles owned, leased, hired, or borrowed by the CONTRACTOR. CONTRACTO R shall provide to CITY proof of insurance and endorsement forms that c onform to CITY’s requirements, as approved by the CITY. Insurance compani es must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY).

In the event any of CONTRACTOR’S underlying policies do not meet policy limits as required here in, CONTRACTOR shall provide the schedule of u nderlying polices for a follows form excess liability policy, state that the excess policy follows form on the insurance certificate, and an additional insured endorsement for the excess liability policy designating CITY, its officers , officials, employees, agents, and volunteers for this contract and all public agencie s from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, as additional insureds. Insurance compa nies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY.

For any claims related to this Project, the CONTRACTOR’s insura nce coverage shall be primary insurance at least as broad as ISO CG 20 01 04 13 as respects CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors,

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officers, agents, and employees, as determined by the CITY. An y insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, shall be excess of the CONTRACTOR’s insurance and not contribute with it.

5.16.5 Before CONTRACTOR performs any work at, or prepares or delive rs materials to, the site of construction, CONTRACTOR shall furnish:

CONTRACTOR shall maintain all of the foregoing insurance cove rage in force until the work under this Contract is fully completed. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under Section 5.17 of this Contract. Not withstanding nor diminishing the obligations of CONTRACTOR with respect to t he foregoing, CONTRACTOR shall subscribe for and maintain in full force and e ffect during the life of this Contract, the following insurance in amounts not less than the amounts specified and issued by a company admitted and licensed in California and having a Best's Guide Rating of A-Class VII or better:

Workers’ Compensation As required by the State of
California.

Employer’s Liability

Not less than $1,000,000 per
accident for bodily injury or disease.

Commercial General Liability
(including on-going operations, products
- completed operations, and mobile
equipment, and not excluding XCU)

Contractor’s Pollution Legal Liability

Not less than $5,000,000 per
occurrence for bodily injury,
personal injury and property
damage.

Not less than $1,000,000 per
occurrence

Automobile Liability, for all automobiles
including non-owned and hired vehicles
Not less than $2,000,000 combined
single limit for bodily injury and
property damage.

Follows Form Excess Liability

Required for any underlying policy
that does not meet the underlying
policy limits required herein.

If contractor maintains higher insurance limits than the minimu ms shown above, CONTRACTOR shall provide coverage for the higher limits otherwi se maintained by the CONTRACTOR.

CITY or its representatives shall at all times have the right to inspect and receive a certified copy of all said policies of insurance, including certificates and endorsements at

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CONTRACTORS sole cost and expense. CONTRACTOR shall pay the pr emiums on the insurance hereinabove required.

5.17 Risk and Indemnification. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone.

CONTRACTOR agrees to save, indemnify and keep the CITY, its Off icers, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their directors, Officers, Agents and Employees harmless against any and all liability, claims, judgments, costs and dem ands, including demands arising from injuries or death of persons (CONTRACTOR'S employees included) and damage to property, arising directly or indirectly out of the o bligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the sole negligence or sole willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attor neys' fees CITY may incur by reason of such matters, and if requested by CITY, will defend any such suits at the sole cost and expense of CONTRACTOR.

5.18 Termination.

5.18.1 This Contract may be terminated in whole or in part in writing by the CITY for its convenience, provided that the CONTRACTOR is given (1) not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, and (2) an opportunity for c onsultation with the terminating party prior to termination.

5.18.2 If termination for default or convenience is effected by the C ITY, an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed s ervices or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY becau se of the CONTRACTOR'S default.

5.18.3 Upon receipt of a termination action under paragraph (5.18.1) or (5.18.2) above, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make av ailable to the CITY all data, drawings, specifications, reports, estimates, summari es and such other information and materials as may have been accumulated by the C ONTRACTOR in performing this Contract whether completed or in process.

5.18.4 Upon termination under paragraphs (5.18.1) and (5.18.2) above, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.

5.19 Warranty. The CONTRACTOR agrees to perform all work under this Contract i n accordance with the CITY’s designs, drawings and specifications.

The CONTRACTOR guarantees for a period of one (1) year from th e date of the notice of completion of the work that the completed work is free from all defects due to faulty materials, equipment or workmanship and that he shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs or any damage to other parts of the system resulting from such def ects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the

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CONTRACTOR fails to make adjustments, repairs, corrections or o ther work made necessary by such defects, the CITY may do so and charge the CO NTRACTOR the cost incurred. The performance bond shall remain in full force and effect through the guarantee period.

The CONTRACTOR'S obligations under this clause are in addition to the CONTRACTOR'S other express or implied assurances of this Contract or state law and in no way diminish any other rights that the CITY may have against the CONTRACTOR for faulty materials, equipment or work.

5.20 Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, each shall bear its own attorneys' fees , costs and necessary disbursements. Notwithstanding the foregoing, if any action is brought against the CONTRACTOR or any subcontractor to enforce a Stop Notice or Notice to Withhold, which named the CITY as a party to said action, the CITY shall be entitled to reasonable attorneys' fees, costs and necessary disbursements arising out of the defe nse of such action by the CITY. The CITY shall be entitled to deduct its costs for any Stop Notice filed, whether court action is involved or not.

5.21 Notices. Any notice required or permitted under this Contract may be g iven by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.

TO CITY: TO CONTRACTOR:

City of Garden Grove Pavement Coatings Co.

Public Works Department Attention: James Wu
Attention: Navin Maru or Nick Hsieh 10240 San Sevaine Way 11222 Acacia Parkway Jurupa Valley, CA 91752
Garden Grove, CA 92842 (714) 823-3011
(714) 741-5180 or 5190 (714) 826-3129 Fax
(714) 741-5578 Fax

[SIGNATURES ON NEXT PAGE]

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IN WITNESS THEREOF, these parties have executed this Construction Agreement on the day and year shown below.

Date: "CITY"

CITY OF GARDEN GROVE

B y:

Lisa Kim
City Manager
ATTEST:

City Clerk

Date:
"CONTRACTOR"

CONTRACTOR'S State License No. 303609
(Expiration Date: 09/30/2024

CONTRACTOR'S DIR No. 1000003382
Attached Copy of your DIR Certificate.

B y:

Title:

Date:

APPROVED AS TO FORM:

______________________________
Garden Grove City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.

Date___________________________

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Garden Grove City CouncilMay 23, 2023

Garden Grove City Council
May 23, 2023