Agenda, first session — Garden Grove City Council, June 27, 2023 (part 4 of 4)

SECTION 5 - AGREEMENT (Continued)

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5.8 Extra Work. The Contract price includes compensation for all work performed by CONTRACTOR, unless CONTRACTOR obtains a written change order signed by a designated representative of CITY specifying the exact nature of the extra work and the amount of extra compensation to be paid all as more particularly 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.

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 submit 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 failure 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 which the CONTRACTOR believes caused any change to the CONTRACTOR’S costs or project schedule, provided CONTRACTOR gives the CITY written notice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze 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 the issue.

CONTRACTOR’S failure to submit the notice, which includes the written request for equitable adjustment within the required twenty (20) days shall 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 response within thirty (30) days of receipt of the request either approving or denying the request.

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5.9.3 Except as provided in this Section 5.9, no order, statement or 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 which the CITY is responsible, the equitable adjustment shall include any increased direct cost CONTRACTOR reasonably incurred in attempting to comply with those defective specifications.

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 extent 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 allowed 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 may require without nullifying this Contract.

CONTRACTOR shall adhere strictly to the Plans and Specifications unless a change there from is authorized in writing by the CITY. Under no condition shall CONTRACTOR make any changes to the Projec t, either in additions or 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 immediately to the CITY written copies of its firm's cost or credit proposal for change in the work.

Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefore shall be submitted without delay 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 extensions 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 therefore agree that CONTRACTOR will pay to CITY the sum of One Thousand Five Hundred dollars ($1,500.00) per day for each and every calendar day during which completion of the Project is so delayed. The liquidated damages will be applied separately for the two Notices to Proceed: the delivery of long lead items, and for the project completion (See Section 5.5). 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 CONTRACTOR under the Contract.

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SECTION 5 - AGREEMENT (Continued)

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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 One Million Four Hundred Fifty-Five Thousand and One Hundred dollars and 00/100 ($ 1,455,100.00 ) 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 35 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 the work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial 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 Public Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in 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 Project, CONTRACTOR shall file with the CITY’S Engineer its affidavit stating that all workers and persons employed, all firms supplying materials, and all SUBCONTRACTORs 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 may 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 that State prevailing wage requirements of the California Labor Code including Sections 1770, 1771.5, 1773, 1777.5, and 1776 are required to execute this Contract. If there is a difference between the minimum wage rates predetermined by the Secretary of Labor and the general prevailing wage rates determined by the Director of the California Department of Industrial Relations for similar classifications of labor, the CONTRACTOR and the SUBCONTRACTORs shall pay not less than the higher wage rate. The CITY will not accept the lower State wage rates. This includes “helper” (or other classifications based on hours of experience) or any other classification. A copy of the prevailing rate of per diem wages shall be posted at the job site.

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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 greater of State minimum wage rate associated with the duties of the employee in question, in accordance with the State prevailing wage requirements of the California Labor Code, including Sections 1770, 1771.5, 1773, 1777.5, and 1776.

5.14.3 Apprentices. The greater of 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 if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days, or more; or if contracts of specialty CONTRACTORs not bidding for work through the general or prime CONTRACTOR are two thousand dollars ($2,000.00) or more for five (5) working days or more.

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 require 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 sum of twenty-five Dollars ($25.00) for each worker employed in the execution of this Contract by CONTRACTOR or any SUBCONTRACTOR for each calendar day during which any worker is required or permitted to labor more than eight (8) hours 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.

The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks for laborers, every week to the CITY. Certified payroll and cancelled checks submittals are due one month after start of construction and every week thereafter. If the certified payroll and cancelled checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working

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SECTION 5 - AGREEMENT (Continued)

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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 cease 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 due 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 until 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 other regulation promulgated pursuant to Labor Code Section 1771.4(a)(2).

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, upon entering into performance of this Agreement, furnish bonds in the amount of one hundred percent (100%) of the Contract price bid, to guarantee the faithful performance of the work, and the other in the amount of one hundred percent (100%) of the Contract price bid to guarantee payment of all claims for labor and materials furnished. This Contract shall not become effective until such bonds are supplied to and approved by the CITY.

5.16 Insurance.

5.16.1 CONTRACTOR is also aware of the provisions of Section 3700 of the Labor 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 commencing the performance of the work of this Contract.

5.16.2 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, Official Agents Employees, Engineers, Volunteers, and Consultants 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 an insurance certificate and waiver of subrogation to the policy evidencing same.

5.16.3 CONTRACTOR shall at all times carry, on all operations hereunder, bodily injury, including death, and property damage liability insurance, including automotive operations bodily injury and property damage coverage; and builders' all risk insurance. Follows Form excess liability insurance shall be provided for any

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SECTION 5 - AGREEMENT (Continued)

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underlying policy that does not meet the policy limits required by this contract. All insurance coverage shall be in amounts specified by the CITY in the Insurance Requirements and shall be evidenced by the issuance of a certificate and additional insured endorsement in forms prescribed by the CITY and shall be underwritten by insurance companies satisfactory to the CITY for all operations, subcontract work, contractual obligations, product or completed operations, all owned vehicles and non-owned vehicles. Claims made and modified occurrence policies shall not be accepted. Said insurance coverage obtained by the CONTRACTOR, excepting workers' compensation coverage, shall name the CITY, its Officers, Official, Agents, Employees, Engineers, Volunteers, and Consultants 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 insured on said policies. Additional insured status shall be evidenced in the form of an Additional insured Endorsement (CG 20 10 1185). A sample is included in the appendix of the specifications for reference.

For any claims related to this Project, the Contractor’s insurance coverage shall be primary insurance as respects the CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants 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. Any insurance or self- insurance maintained by the CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants 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.

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

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

Contractor shall also provide a waiver of subrogation for each policy.

INSURANCE AMOUNTS. CONTRACTOR shall maintain all of the foregoing insurance coverage 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. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect 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 (Claims made and modified occurrence policies are not acceptable):

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SECTION 5 - AGREEMENT (Continued)

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Workers’ Compensation As required by the State of California.

Employer’s Liability $1,000,000 per accident for bodily injury or disease.

Commercial General Liability
(including operations, products and
completed operations, and not
excluding XCU)
$5,000,000 per occurrence for bodily
injury, personal injury and property
damage. Coverage shall include mobile
equipment.

Automobile Liability, including
non-owned and hired vehicles
$2,000,000 combined single limit for
bodily injury and property damage.

Course of Construction Completed value of the project with no coinsurance penalty provisions.

Excess liability, follows form coverage, shall be provided for any underlying policy that does not meet the policy limits required and set forth herein. Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A-, Class VII or better, as approved by CITY.

An Additional Insured Endorsement, ongoing and products-completed operations, and including mobile equipment, for the Commercial General Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants 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 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 City’s requirements, as approved by the CITY.

An Additional Insured Endorsement for Automobile Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants 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 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 CITY.

A Loss Payee Endorsement for the Course of Construction policy shall designate CITY as loss payee. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by the CITY.

In the event any of CONTRACTOR’S underlying policies do not meet policy limits within the insurance requirements, CONTRACTOR shall provide coverage under an excess liability policy. The policy must be a follows form excess/umbrella policy. CONTRACTOR shall provide the schedule of underlying polices for an excess/umbrella liability policy, state that the excess/umbrella policy follows form on the insurance certificate, and provide an additional insured endorsement for the excess/umbrella liability policy designating CITY, its

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SECTION 5 - AGREEMENT (Continued)

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Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants 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.

A primary/non-contributory endorsement shall be provided to CITY for each policy. For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, agents, employees, 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 CITY. Any insurance or self-insurance maintained by CITY, its officers, officials, agents, employees, 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 CITY shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

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

CONTRACTOR shall pay the premiums on the insurance hereinabove required.

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

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 Officers, 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 demands, including demands arising from injuries or death of persons (CONTRACTOR'S employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the negligence or willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attorneys' 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 consultation with the terminating party prior to termination.

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SECTION 5 - AGREEMENT (Continued)

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5.18.2 If termination for default or convenience is effected by the CITY, 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 services 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 because 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 available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the CONTRACTOR 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 in accordance with the CITY 's designs, drawings and specifications.

The CONTRACTOR guarantees for a period of one (1) year from the 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 defects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, the CITY may do so and charge the CONTRACTOR 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 defense 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 given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.

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SECTION 5 - AGREEMENT (Continued)

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To CITY: To CONTRACTOR:

City of Garden Grove __Seth A. Jamali-Dinan____
Public Works Department __LEED Electric, Inc.______
Attention: Rebecca Li, P.E. __13138 Artic Circle______
13802 Newhope Street __Santa Fe Springs, CA 90670_
Garden Grove, CA 92843 _______________________
(714) 741-5562
(714) 638-9906 Fax

SIGNATURES ON NEXT PAGE

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SECTION 5 - AGREEMENT (Continued)

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

"CITY"

CITY OF GARDEN GROVE

Date:____________________________ By:

Lisa Kim
City Manager

ATTEST:

City Clerk

Date:
"CONTRACTOR"

___________________________________________

CONTRACTOR'S State License No.
(Expiration Date: )

By:

Title:

Date:

APPROVED AS TO FORM:

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

Date:___________________________

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Agenda Item - 7.g.

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 RJ Noble
Company for construction of
the Arterial Streets
Rehabilitation Project 2023,
City Project No. CP-
1356000. (Cost:
$6,985,336.50) (Action
Item)
Date: 6/27/2023

OBJECTIVE
For City Council to award a contract to RJ Noble Company for Arterial Streets Rehabilitation Project 2023, City Project No. CP-1356000, for the following street segments: Trask Avenue from Benton Street to Euclid Street; Haster Street from Lampson Avenue to Chapman Avenue; Garden Grove Boulevard from Gilbert Street to Brookhurst Street; Springdale Street from Lampson Avenue to Chapman Avenue; West Street from Lampson Avenue to Chapman Avenue; Lampson Avenue from Euclid Street to West Street; and Buaro Street from Harbor Boulevard to Lampson Avenue.

BACKGROUND
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, asphalt rubber aggregate membrane (ARAM), asphalt paving, replacement of concrete curb and gutter, cross gutter, local depression, driveway, sidewalk, and curb ramps, adjustment of utility covers to finish grade, catch basin inlet screens, closed circuit television cameras, push button pole relocation, conduit and pull-box installation, restoration of traffic striping, signing, pavement marking and markers, reestablishment of centerline ties and monuments.

DISCUSSION
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 June 14, 2023. The lowest qualified contractor was RJ Noble Company, with a total bid of

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$6,985,336.50. 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 - June 27, 2023 Begin construction (estimated) - July 17, 2023 Complete construction (estimated) - March 05, 2024

FINANCIAL IMPACT
The Arterial Streets Rehabilitation Project 2023 is included in the Fiscal Year 2023-24 adopted Capital Improvement Plan budget and is funded by Gas Tax and the General Fund. Funding from the General Fund is from the Pavement Management Acceleration Program which was approved by the City Council in June 2021. No additional appropriation is needed to approve the contract.

RECOMMENDATION
It is recommended that the City Council:

Award a contract to RJ Noble Company, in the amount of $6,985,336.50 for Arterial Streets Rehabilitation Project 2023, City Project No. CP-1356000, for the following street segments: Trask Avenue from Benton Street to Euclid Street; Haster Street from Lampson Avenue to Chapman Avenue; Garden Grove Boulevard from Gilbert Street to Brookhurst Street; Springdale Street from Lampson Avenue to Chapman Avenue; West Street from Lampson Avenue to Chapman Avenue; Lampson Avenue from Euclid Street to West Street; and Buaro Street from Harbor Boulevard to Lampson Avenue; and

Authorize the City Manager to execute the contract with RJ Noble Company, 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 6/15/2023 Exhibit 1_Bid_Summary_Sheet.pdf
AGREEMENT 6/15/2023 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 REHABILITATION PROJECT 2023
CITY PROJECT NO. CP-1356000

BID OPENING: DATE: JUNE 14, 2023 TIME: 11:00 A.M.

ENGINEER’S ESTIMATE: $ 7,272,835.00

Bidder’s Name Total Bid % Under/Over
Engrs. Est
RJ Noble Company, Orange $6,985,336.50 3.95% Under
Sully-Miller Contracting Company, Brea $8,438,860.00 16.03% Over

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

RJ NOBLE COMPANY

THIS AGREEMENT is made this 27th day of June, 2023 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and RJ NOBLE COMPANY , 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 June 27 , 2023 .

2. CITY desires to utilize the se rvices of CONTRACTOR to furnish material, equipment, and labor for the ARTERIAL STREETS REHABILITATION PROJECT 2023, City Project No. CP – 1356000.

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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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 REHABILITATION PROJECT 2023, City Project No. CP – 1356000.

5.4 Plans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: ARTERIAL STREETS REHABILITATION PROJECT 2023, City Project No. CP – 1356000. 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 are 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 July 17, 2023 per the Notice to Proceed issued by the City and the CONTRACTOR agrees to submit shop drawings within fourteen (14) calendar days. Further, upon receipt of the Notice to Proceed, the CONTRACTO R shall diligently prosecute the work within 150 (One Hundred and Fifty) working days t o completion as required per the plans and specifications excludi ng 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 exe cuted 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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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.

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5.9 Changes in Project.

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.

5.9.1 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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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 therefore shall be submitted without delay 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 therefore 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 Six Million, Nine Hundred Eighty Five Thousand, Three Hundred and Thirty Six Dollars and Fifty Cents ($6,985,336.50) 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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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 1770-1778 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 1778.5, 1778.6 and 1778.7 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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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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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 insured’s. Insurance comp anies 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.

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SECTION 5 - AGREEMENT (Continued)
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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.

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 RJ Noble Company
Public Works Department Attention: Jacob Breedlove
Attention: Navin Maru or Nick Hsieh 15505 E. Lincoln Ave. 11222 Acacia Parkway Orange, CA 92865
Garden Grove, CA 92842 (714) 637-1550
(714) 741-5180 or 5190 (714) 637-6321
(714) 741-5578 Fax

[SIGNATURES ON NEXT PAGE]

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SECTION 5 - AGREEMENT (Continued)
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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"

R J N O B L E C O M P A N Y

CONTRACTOR'S State License No.
782908 Class A & C12
(Expiration Date: 08/31/2024

CONTRACTOR'S DIR No. 1000004235
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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Agenda Item - 8.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Patricia Song
Dept.: City Manager Dept.: Finance
Subject: Second reading and adoption
of Ordinance No. 2942
Date: 6/27/2023
Attached is Ordinance No. 2942 recommended for second reading and adoption.

ATTACHMENTS:

Description Upload Date Type File Name
Ordinance 6/21/2023 Ordinance 2942_GG_Ordinance_Parademic_Ad_Valorem_Tax_Override.docx

Page 445 of 448 ends

ORDINANCE NO. 2942

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE

ESTABLISHING THE AMOUNT OF MONEY FOR PARAMEDIC SERVICES THAT MUST BE

RAISED BY AN AD VALOREM TAX OVERRIDE AND THE SETTING OF THE TAX RATE

OF SAID OVERRIDE

City Attorney’s Summary

City Council Resolution No. 4547-74 submitted to the voters for approval an ad valorem tax for paramedic services in an amount not to exceed 10¢ per $100 of assessed valuation. The measure was approved by the voters in June 1974. State law requires that the City Council set the annual levy of the tax by ordinance or resolution. This Ordinance sets the levy of the tax at 8¢ per $100 of assessed valuation for FY 2023-2024.

THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOES ORDAIN AS FOLLOWS:

SECTION 1: In June 1974, over sixty percent (60%) of the Garden Grove voters approved an ad valorem tax override to provide emergency medical care service (Paramedic Services) to the community, whether it be provided by the City of Garden Grove or on a regional basis, and thereby incurring a debt consisting of personnel and equipment and contractual pay ment obligations for the provision of Paramedic Services.

SECTION 2: Property taxes for indebtedness approved by the voters prior to July 1, 1978, are authorized pursuant to Section 93 of the Revenue and Taxation Code.

SECTION 3: The City Council of the City of Garden Grove hereby declares it is necessary to raise an estimated $14,900,000 through the use of an ad valorem tax override on the taxable property within the City of Garden Grove to maintain and pay for the emergency medical care services. Such indebtedness to be paid includes personnel salaries, training costs, equipment, maintenance of all equipment acquired, and contractual obligations for the provision of paramedic services to the community.

SECTION 4: The tax rate for the authorized ad valorem tax override as approved by voters of all assessable real and personal property for the Fiscal Year 2023-2024 shall be 8.0 cents ($.080) per one-hundred dollars ($100) of assessed valuation, using as a basis the value of the property as assessed and equalized by the County of Orange, State of California, and shown on the 2023-2024 assessment roll of said county.

SECTION 5 : This ordinance shall exclude from Section 4 annexations of assessable, real and personal property to the City of Garden Grove after July 1, 1978, indicated by the listing on the attached document designated Exhibit "A".

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Ordinance No. 2942

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SECTION 6: Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fa ct that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words, or portions thereof be declared invalid or unconstitutional.

SECTION 7: The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law.

The foregoing Ordinance was passed by the City Council of the City of Garden Grove on the ___ day of ____________.

ATTEST:

MAYOR
_______________________________

DEPUTY CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:

CITY OF GARDEN GROVE )

I, TERESA POMEROY, City Clerk of the City of Garden Grove, do hereby certify that the foregoing Ordinance was introduced for fi rst reading and passed to second reading on June 13, 2023, with a vote as follows:

AYES: COUNCIL MEMBERS: (6) O’NEILL, TRAN, DOVINH, KLOPFENSTEIN, NGUYEN K., BRIETIGAM
NOES: COUNCIL MEMBERS: (0) NONE
ABSENT: COUNCIL MEMBERS: (1) JONES

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Garden Grove City Council
Ordinance No. 2942

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EXHIBIT "A"

Listed Annexations Finalized after July 1, 1978 and
Not Subject to Paramedic Tax Override

Annexation No./
Reorganization No.

City Resolution No. Date Completed
1-78 5573-78 August 8, 1978
2-78 5634-78 October 24, 1978
3-78 5637-78 November 28, 1978
4-78 5670-78 November 30, 1978
5-78 5671-78 November 30, 1978
7-78 5731-79 March 30, 1979
1-79 5813-79 July 30, 1979
141 7875-96 May 29, 1996

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Garden Grove City CouncilJune 27, 2023

Garden Grove City Council
June 27, 2023