City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01131 9/19/2023 Consent Item 7.
Contract: On-Call General Contracting Services for Park Operation Projects (Two-Thirds Vote Required)
File ID: 2023-01131
Location: Citywide
Recommendation: Pass a Motion: 1) suspending competitive bidding in the best interests of the City (for the reasons set forth below) to authorize awarding contracts for On-Call General Contracting Services for Park Operation Projects based on a Request for Proposals rather than a low-bid procurement process; and 2) authorizing the City Manager or the City Manager’s designee to execute two contracts for On-Call General Contracting Services for Park Operation Projects, each in the amount of $875,000 and for a five-year term with a) Parker Landscape Development, Inc. and b) Saenz Landscape Construction Company.
Contact: Shawn C. Aylesworth, Park Maintenance Manager, (916) 808-4070, [email protected], Youth, Parks & Community Enrichment Department (YPCE) Presenter: None
Attachments:
1-Description/Analysis
2-Contract - Parker Landscape Development, Inc.
3-Contract - Saenz Landscape Construction Company
Description/Analysis
Issue Detail: Staff recommends that the Council suspend competitive bidding to allow for the award of two contracts for On-Call General Contracting Services for Park Operation Projects. These contracts will enable the City to move forward quickly with small park improvement projects. Issuing requests for bids for these small projects is time consuming and difficult to get contractors to bid on the projects individually given the low-dollar value of the projects. A Request for Proposals (RFP) was issued, and staff recommends awarding contracts to both Parker Landscape Development, Inc. and Saenz Landscape Construction Company based on the contractors’ experience and qualifications,
File ID: 2023-01131 9/19/2023 Consent Item 7.
and reasonable administrative costs.
The On-Call General Contracting Services for Park Operation Project contracts with Parker Landscape Development, Inc. and Saenz Landscape Construction Company will allow YPCE to deliver small projects in a more cost effective and efficient manner in addition to addressing the backlog of deferred maintenance.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.60 requiring City Council for approval for agreements of $250,000 or more. City Code section 3.60.170(d) authorizes the City Council to suspend competitive bidding when, upon two-thirds vote, the City Council determines it is in the best interest of the City.
Economic Impacts: Not Applicable.
Environmental Considerations: The action concerns continuing administrative activities that does not constitute a “project” as defined by California Environmental Quality Act (CEQA) Guidelines Sections 15378(b)(2) and is not subject to CEQA (CEQA Guidelines Section 15060(c)(3)). However, each task order assignment, prior to being assigned to a contractor, will be subject to CEQA and will be reviewed individually.
Sustainability: Not Applicable.
Commission/Committee Action: None.
Rationale for Recommendation: On June 16, 2023, YPCE issued an RFP for On-Call General Contracting Services for Park Operation Projects. The RFP was advertised on the City’s Planet Bids website for bid opportunities. Proposals were received on July 17, 2023. A total of two responses were received and were determined to be responsive and met the required experience and licensing.
Based on the review, staff recommends awarding contracts to both Parker Landscape Development, Inc. and Saenz Landscape Construction Company.
The use of an On-Call List for General Contracting Services is necessary to allow YPCE to deliver small repair and restoration projects in an effective and cost-efficient manner by reducing the time needed to select and engage contractors. Additionally, unforeseeable conditions identified during the course of a project may be addressed immediately. Establishing an On-Call contracting list is an industry “best practice” for cost-effective and efficient delivery of projects and services.
Financial Considerations: Each contract will be in a total amount of $875,000. The contracts require issuance of task orders that the contractor must first provide a quote which the City can accept or reject. Purchase orders encumbering funds under these agreements will not be created until projects are identified and task orders issued. Funding under these contracts will be provided
File ID: 2023-01131 9/19/2023 Consent Item 7.
for in Measure U Park Improvements CIP (L19706000) as well as department operating budgets, subject to sufficient funding in the applicable fiscal year’s budget. Contractors may have multiple assignments in a given year; however, the aggregate amount shall not exceed the contract amount identified in the agreement. It is anticipated that the amount to be awarded each year per contractor would be approximately $175,000.
Local Business Enterprise (LBE): The RFP required contractors to submit their LBE certification status. Each firm is either qualified as an LBE or will meet the requirement through subcontracting.
Form approved by City Attorney Sept 2021 1
ON-CALL GENERAL CONTRACTING SERVICES FOR PARK OPERATION PROJECTS (BID #P2 191311001)
AGREEMENT
(Construction Contract Over $25,000)
THIS AGREEMENT entered into on , 202 (“Effective ate”), is made and entered into between the CITY OF SACRAMENTO, a municipal corporation (“City”), and a California (“Contractor”) in the amount
of $ ,000.
The City and Contractor mutually agree as follows:
1. CONTRACT DOCUMENTS
The Contract Documents, sometimes also referred to as the “Contract,” consist of the following items, which are hereby incorporated by reference as if set forth in full in this Agreement:
Notice to Contractors
Proposal Form submitted by the Contractor
Instructions to Bidders
Subcontractor and Local Business Enterprise Participation Form Drug-Free Workplace Policy and Affidavit
Construction and Demolition (C&D) Debris Recycling Requirements Workers’ Compensation Insurance Certification
Federal or State funding requirements (if applicable)
Labor Compliance Requirements
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Notice Regarding Assembly Bill 626
Addenda, if any
Standard Specifications
Special Provisions set forth in a Task Order
Plans and Technical Specifications set forth in a Task Order The drawings and other data and all developments thereof prepared by City pursuant to the Contract
Any modifications of any of the foregoing made or approved by City, including but not limited to duly authorized change orders
Unless specifically noted otherwise, references to the “Standard Specifications” shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento dated November 2020, and any subsequent amendments thereto approved by the Sacramento City Council or the Sacramento City Manager. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The table of contents, titles and headings contained in the Contract Documents are provided solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretation of the provisions to which they refer.
2. DEFINITIONS
Unless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement.
Form approved by City Attorney Sept 2021 2
3. AGREEMENT CONTROLS
In the event of a conflict between any of the terms and conditions set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail, except that the provisions of any duly authorized change order shall prevail over any conflicting provisions of this Agreement.
4. SCOPE AND TERM OF CONTRACT
A. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, material and transportation necessary to perform and complete in a good and workmanlike manner to the satisfaction of City, all the Work called for in the Contract Documents entitled:
ON-CALL GENERAL CONTRACTING SERVICES FOR PARK OPERATION PROJECTS (BID #P2 191311001)
Contractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.
B. A general scope of work is contained in the Technical Specifications and may be further defined in a Task Order. Each Task Order will detail the Work for each job and may involve varying levels of effort. City will issue to Contractor a request for services, Contractor shall provide a price proposal, and City may award the Task Order to Contractor based on its price proposal. Contractor acknowledges that City has the right to assign a Task Order to a different contractor and not assign any Task Orders to Contractor for any reason. The need for services is based on the need for renovations, repairs and maintenance of City facilities and the need may occur irregularly and not continuously, and no services may be required under this Contract. All such Task Orders will constitute part of this Contract, and the Contractor shall perform, comply with and be subject to all provisions of this Contract. Except as set forth in a Task Order, Contractor shall, at its sole cost and expense, furnish all materials, supplies and equipment that may be required for Contractor to perform the Work pursuant to the Task Order. City shall furnish to Contractor only the materials, supplies and equipment listed as “City Furnished” in a Task Order according to any terms and conditions set forth in the Task Order.
C. Prior to the performance of any Work on a Task Order that exceeds $25,000, Contractor shall provide performance and payment bonds on City-approved forms for the amount of the Task Order.
D. The initial term of this Contract is two (2) years from the Effective Date with an option to extend for an additional three years for a total five (5) year contract.
5. CONTRACT AMOUNT AND PAYMENTS
A. Prevailing Wages - Alteration, installation and repair work of City facilities constitute “public works” under California Labor Code section 1720 et seq., and are subject to the requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code and its implementing regulations set forth in Title 8 of the California Code of Regulations.
Contractor and any subcontractor performing any Services shall comply with all applicable requirements of the California Labor Code and the Sacramento City Code.
Pursuant to Sacramento City Code Section 3.60.180, Contractor is required and agrees to pay the State of California, Department of Industrial Relations prevailing wage rates for covered trades employed for any construction work over $25,000 or any alteration, demolition, repair, or maintenance work in an amount exceeding $15,000. The Form approved by City Attorney Sept 2021 3
prevailing wage rates may be found at http://www.dir.ca.gov/dlsr/pwd/. Contractor and every lower-tier subcontractor shall submit certified payrolls and labor compliance documentation electronically when and as required by City. Contractor is responsible for compliance with Sacramento City Code section 3.60.180, and shall include these requirements in every subcontract or subcontract.
Apprentices - Contractor agrees to utilize apprentices as required by the State of California Labor Code. The Contractor and any subcontractor performing work will be subject to penalties for apprenticeship violations in accordance with Labor Code section 1777.7.
DIR Registration - California Labor Code section 1725.5 requires Contractor and any subcontractor performing any work under this Agreement to be currently registered with the California Department of Industrial Relations (DIR), as specified in Labor Code section 1725.5. Labor Code section 1771.1 provides that a contractor or subcontractor shall not be qualified to engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Labor Code section 1725.5. Prior to the performance of work by any subcontractor under this Agreement, Contractor shall furnish City the subcontractor’s current DIR registration number.
Penalties - This Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. The Contractor and any subcontractor performing work will be subject to withholding and penalties for violation of prevailing wage requirements in accordance with applicable law, including Labor Code sections 1726, 1741, 1771.5, and 1775, and City Code section 3.60.180.
Payment for each Task Order shall be authorized by issuance of the Task Order as provided in Section 4, above, and City shall have no responsibility or liability for any payment not authorized by a City-issued Task Order. All payments shall be made in accordance with the schedule and procedures set forth in the Contract Documents and subject to deductions, withholdings and additions as specified in the Contract Documents.
Unit prices and hourly rates shall not exceed the amount(s) set forth in Contractor’s Proposal Form, provided that for each year the Contract term is extended, to account for inflation, the unit prices and hourly rates set forth in Contractor’s Proposal Form shall be increased by an amount equal to three (3) percent or the percentage increase for the previous 12 month period in the Consumer Price Index (CPI), San Francisco area, whichever is less.
Subject to deductions, withholdings and additions as specified in the Contract Documents, Contractor shall be paid the sum computed at such unit prices or hourly rates, or computed at a different price if such different price is determined by City in accordance with the Standard Specifications, based on the actual hours worked or actual amount of each such unit price item performed and/ or furnished and incorporated in the work as set forth in the Task Order.
Maximum Annual Payment: The total amount paid for all work authorized by Task Orders during each one-year term of the Contract shall not exceed $1 ,000. 6. PROGRESS PAYMENTS Form approved by City Attorney Sept 2021 4
Subject to the terms and conditions of the Contract, City shall cause payments to be made upon demand of Contractor as follows:
A. On or about the first of the month, the Engineer shall present to the Contractor a statement (in the format required by City) showing the amount of labor and materials incorporated in the Work through the twentieth (20) calendar day of the preceding month. After both Contractor and Engineer approve the statement in writing, and the City’s labor compliance officer provides written approval, the City shall issue a certificate for ninety-five (95) percent of the amount it shall find to be due, subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations.
B. No inaccuracy or error in said monthly estimates shall operate to release Contractor from damages arising from such Work or from enforcement of each and every provision of the Contract Documents, and City shall have the right subsequently to correct any error made in any estimate for payment.
C. Contractor shall not be paid for any defective or improper Work.
D. The remaining five (5) percent of the value of the Work performed under the Contract, if unencumbered and subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations, shall be released not later than sixty (60) days after completion and final acceptance by City of the Work specified in the Task Order. Acceptance by Contractor of the final payment for a Task Order shall constitute a waiver of all claims against the City arising under the Contract Documents, except for disputed claims in stated amounts that the Contractor specifically reserves in writing, but only to the extent that the Contractor has complied with all procedures and requirements applicable to the presentation and processing of such claim(s) under the Contract Documents. Contractor shall be entitled to substitute securities for retention or to direct that payments of retention be made into escrow, as provided in Public Contract Code Section 22300, upon execution of the City’s Escrow Agreement for Security Deposits in Lieu of Retention.
E. The parties agree that, for purposes of the timely progress payment requirements specified in Public Contract Code Section 20104.50, the date that the City receives a statement jointly approved as provided above shall be deemed to constitute the date that City receives an undisputed and properly submitted payment request from the Contractor. Progress payments not made within 30 days after this date may be subject to payment of interest as provided in Public Contract Code Section 20104.50.
F. Refer to Monthly Pay Request Processing Procedures for submissions. Questions can be submitted to the Project Manager or Contracts & Compliance Specialist.
7. RETENTION OF SUMS CHARGED AGAINST CONTRACTOR
When, under the provisions of this Contract or any applicable Laws or Regulations, City is authorized or required to withhold, deduct or charge any sum of money against Contractor, City may deduct and retain the amount of such charge from the amount of the next succeeding progress estimate(s), or from any other moneys due or that may become due Contractor from City. If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges, City shall have the right to recover the balance from Contractor or its Sureties.
8. COMMENCEMENT AND PROSECUTION OF WORK
Form approved by City Attorney Sept 2021 5
If City issues a Task Order to Contractor, the Work shall not commence until City issues a Notice to Proceed. Once City issues a Notice to Proceed, Contractor shall commence work not later than ten (10) working days from the date of the Task Order, unless a shorter or longer period is specified in the Task Order. The continuous prosecution of Work by Contractor shall be subject only to Excusable Delays as defined in this Agreement.
9. TIME OF COMPLETION
Contractor shall diligently prosecute the Work to final completion. If so specified in a Cityissued Task Order, the Work required by the Task Order shall be brought to completion in the manner provided for in the Contract Documents on or before the date specified in the Task Order (hereinafter called the “Completion Date”) unless extensions of time are granted in accordance with the Contract Documents.
Failure to complete such Work by the Completion Date and in the manner provided for in the Contract Documents shall subject Contractor to liquidated damages as provided in this Agreement. Time is and shall be of the essence in the performance of the Contract and the Work.
10. PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORK
The payment of any progress payment, or the acceptance thereof by Contractor, shall not constitute acceptance of the Work or any portion thereof and shall in no way reduce the liability of Contractor to replace unsatisfactory work or material, whether or not the unsatisfactory character of such work or material was apparent or detected at the time such payment was made.
11. ACCEPTANCE NOT RELEASE
Contractor shall correct immediately any defective or imperfect work or materials that may be discovered before final acceptance any Work, whether or not such defect or imperfection was previously noticed or identified by the City. The inspection of the Work, or any part thereof, shall not relieve Contractor of any of its obligations to perform satisfactory work as herein specified.
Failure or neglect on the part of City or any of its officers, employees or authorized agents to discover, identify, condemn or reject defective or imperfect work or materials shall not be construed to imply an acceptance of such work or materials, nor shall such failure or neglect be construed as barring City from enforcing Contractor’s warranty(ies) or otherwise recovering damages or such a sum of money as may be required to repair or rebuild the defective or imperfect work or materials whenever City may discover the same, subject only to any statutes of limitation that may apply to any such claim.
12. CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART The City shall have the right at any time to enter upon the Work and perform work not covered by this Contract, or to occupy and use a portion of the Work, prior to the date of acceptance of the Work, without in any way relieving Contractor of any obligations under this Contract.
13. NO WAIVER OF REMEDIES
Neither the inspection by City, its officers, employees or agents, nor any certificate or other approval for the payment of money, nor any payment for, nor acceptance of the whole or any part of the Work by City, nor any extensions of time, nor any position taken by City, its officers, employees or its agents shall operate as a waiver of any provision of the Contract Documents nor of any power herein reserved to City or any right to damages herein provided, nor shall any Form approved by City Attorney Sept 2021 6
waiver of any breach of this Agreement be held to be a waiver of any other or subsequent breach. All remedies provided in the Contract Documents shall be taken and construed as cumulative; in addition to each and every other remedy herein provided, the City shall have any and all equitable and legal remedies that it would in any case have.
14. WARRANTY
Except as otherwise expressly provided in the Contract Documents, and excepting only items of routine maintenance, ordinary wear and tear and unusual abuse or neglect by City, Contractor warrants and guarantees all Work executed and all supplies, materials and devices of whatsoever nature incorporated in or attached to the Work, or otherwise provided as a part of the Work pursuant to the Contract, to be absolutely free of all defects of workmanship and materials for a period of one year after City acceptance of the Work performed for the applicable job/task order. Contractor shall repair or replace all work or material, together with any other work or material that may be displaced or damaged in so doing, that may prove defective in workmanship or material within this one year warranty period without expense or charge of any nature whatsoever to City.
In the event that Contractor shall fail to comply with the conditions of the foregoing warranty within ten (10) days after being notified of the defect in writing, City shall have the right, but shall not be obligated, to repair, or obtain the repair of, the defect and Contractor shall pay to City on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in workmanship or material covered by the foregoing warranty results in a condition that constitutes an immediate hazard to public health or safety, or any property interest, or any person, City shall have the right to immediately repair, or cause to be repaired, such defect, and Contractor shall pay to City on demand all costs and expense of such repair. The foregoing statement relating to hazards to health, safety or property shall be deemed to include both temporary and permanent repairs that may be required as determined in the sole discretion and judgment of City.
In addition to the above, the Contractor shall make a written assignment of all manufacturer’s and other product warranties to the City, prior to City acceptance of the Work performed for the applicable job/task order.
The Contractor’s Performance Bond shall secure the performance of the Contractor’s obligations under this Section 14, and the Contractor and its Surety shall be jointly and severally liable for these obligations.
15. LIQUIDATED DAMAGES IF WORK NOT COMPLETED ON TIME
A. The actual fact of the occurrence of damages and the actual amount of the damages that City would suffer if the Work specified in a Task Order were not completed by the Completion Date specified therein are dependent upon many circumstances and conditions that could prevail in various combinations, and for this reason, it is impracticable and extremely difficult to fix the actual damages. Damages that City would suffer in the event of such delay include: loss of the use of the project; expenses of prolonged assignment to the project of an architectural and/or engineering staff; prolonged costs of administration, inspection, and supervision; increased operational expenses and/or impaired operation of other facilities dependent upon completion of the project; and the loss and inconvenience suffered by the public within the City of Sacramento by reason of the delay in the completion of the project or portion thereof.
Accordingly, the parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the amount(s) set forth herein as liquidated damages reflect the parties’ best efforts at the time of entering into the Contract to estimate the damages that may be incurred by City and the public due to the Contractor’s delay in completion of the Work specified in a Task Order by the Form approved by City Attorney Sept 2021 7
Completion Date specified therein, and shall be presumed to be the amount of damages sustained by the failure of Contractor to complete such Work within such time.
B. If a Task Order specifies a Completion Date for the Work required by the Task Order, Contractor shall pay liquidated damages to City for failure to complete such Work by the Completion Date (as extended in accordance with the Contract Documents, if applicable) in the amount of $1,000.00 for each calendar day after the Completion Date (as extended in accordance with the Contract Documents, if applicable), continuing to the time at which such Work is completed. Such amount is the actual cash value agreed upon by the City and Contractor as the loss to City and the public resulting from Contractor's default.
C. In the event Contractor shall become liable for liquidated damages, City, in addition to all other remedies provided by law, shall have the right to withhold any and all payments that otherwise would be or become due Contractor until the liability of Contractor under this section is finally determined. City shall have the right to use and apply such payments, in whole or in part, to reimburse City for all liquidated damages due or to become due to City. Any remaining balance of such payments shall be paid to Contractor only after discharge in full of all liability incurred by Contractor under this section or otherwise under any provision of the Contract Documents or any applicable Law or Regulation. If the sum so retained by City is not sufficient to discharge all such liabilities of Contractor, Contractor shall continue to remain liable to City until all such liabilities are satisfied in full. No failure by City to withhold any payment as specified above shall in any manner be construed to constitute a release of any such liabilities nor a waiver of the City’s right to withhold payment for such liabilities.
16. INDEMNITY AND HOLD HARMLESS
A. Contractor shall defend, hold harmless and indemnify the City, its officers, employees, and agents, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the Work, including, but not limited to, any fees and/or costs reasonably incurred by City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform the Work by the Contractor, any subcontractor or agent, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not (i) such Liabilities are caused in part by a party indemnified hereunder, or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense to the extent arising from (i) the sole negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, or (ii) the active negligence of City.
B. The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement shall not affect or limit any of City’s rights under this Section 16, nor shall the limits of such insurance limit the liability of Contractor hereunder. The provisions of this Section 16 shall survive any expiration or termination of the Contract.
17. CONTRACTOR SHALL ASSUME RISKS
Form approved by City Attorney Sept 2021 8
Until the completion and final acceptance by City of all Work under this Contract, the Work shall be under Contractor's responsible care and charge, and Contractor, at no cost to City, shall rebuild, repair, restore and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the Work.
18. GENERAL LIABILITY OF CONTRACTOR
Except as otherwise herein expressly stipulated, Contractor shall perform all the Work and furnish all the labor, materials, tools, equipment, apparatus, facilities, transportation, power and light, and appliances, necessary or proper for performing and completing the Work herein required in the manner and within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as a limitation or restriction of any general liability or duty of Contractor, and any reference to any specific duty or liability shall be construed to be solely for the purpose of explanation.
19. INSURANCE
During the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19.
Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Work performed by Contractor under this Contract. No additional compensation will be provided for Contractor’s insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City.
It is understood and agreed by the Contractor that its liability to the City shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract.
A. Minimum Scope & Limits of Insurance Coverage
(1) Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of Contractor and its subcontractors, products and completed operations of Contractor and its subcontractors, and premises owned, leased, or used by Contractor and its subcontractors, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide contractual liability and products and completed operations coverage for the term of the policy.
(2) Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage, and personal injury, with limits of not less than one million dollars ($1,000,000) per accident. The policy shall provide coverage for owned, nonowned, and/or hired autos as appropriate to the operations of the Contractor. (3) Workers’ Compensation Insurance with statutory limits, and Employers’ Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers’ Compensation policy shall include a waiver of subrogation in favor of the City.
B. Additional Insured Coverage
Form approved by City Attorney Sept 2021 9
(1) Commercial General Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Contractor and its subcontractors; products and completed operations of Contractor and its subcontractors; and premises owned, leased, or used by Contractor and its subcontractors.
(2) Automobile Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects auto liability.
C. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
(1) Contractor’s insurance coverage, including excess insurance, shall be primary insurance as respects City, its officials, employees, and volunteers. Any insurance or self-insurance maintained by City, its officials, employees, or volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. (2) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, employees, or volunteers. (3) Coverage shall state that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
(4) City will be provided with thirty (30) days written notice of cancellation or material change in the policy language or terms.
D. Acceptability of Insurance
Insurance shall be placed with insurers with a Bests’ rating of not less than A:VI. Selfinsured retentions, policy terms or other variations that do not comply with the requirements of this Section 3 must be declared to and approved by the City in writing prior to execution of this Contract.
E. Verification of Coverage
(1) Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. The certificates and endorsements shall be forwarded to the City representative named in Exhibit A. Copies of policies shall be delivered to the City on demand. Certificates of insurance shall be signed by an authorized representative of the insurance carrier.
(2) For all insurance policy renewals during the term of this Contract, Contractor shall send insurance certificates reflecting the policy renewals directly to:
City of Sacramento
c/o EXIGIS LLC
P.O. Box 947
Murrieta, CA 92564
Form approved by City Attorney Sept 2021 10
Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to:
[email protected]
(3) The City may withdraw its offer of contract or cancel this Contract if the certificates of insurance and endorsements required have not been provided prior to execution of this Contract. The City may withhold payments to Contractor or cancel the Contract if the insurance is canceled or Contractor otherwise ceases to be insured as required herein.
F. Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in subsection A, above.
20. FAILURE TO MAINTAIN BONDS OR INSURANCE
If, at any time during the performance of this Contract, Contractor fails to maintain any item of the bonds and/or insurance required under the Contract in full force and effect, Contractor shall immediately suspend all work under the Contract and notify City in writing of such failure.
After such notice is provided, or if City discovers such failure and notifies Contractor, the City thereafter may withhold all Contract payments due or that become due until notice is received by City that such bonds and/or insurance have been restored in full force and effect and that the premiums therefore have been paid for a period satisfactory to the Division of Risk Management. Contractor shall not resume work until notified by City to do so, and the City shall have no responsibility or liability for any costs incurred by Contractor as a result of such suspension of Work.
In addition to the foregoing, any failure to maintain any item of the required bonds and/or insurance at any time during the performance of this Contract will be sufficient cause for termination of the Contract by City.
The Contractor shall be solely responsible for, and shall defend, indemnify and hold harmless the City, its officers, employees and agents against and from, any and all damages, claims, losses, actions, costs or other expenses of any kind incurred by any party as a direct or indirect result of any suspension of Work or termination of the Contract under the provisions of this Section.
21. EXCUSABLE DELAYS
For the purpose of these Contract Documents, the term "Excusable Delay" shall mean, and is limited to, delay caused directly by: acts of God; acts of a public enemy; fires; inclement weather as determined by the Engineer; riots; insurrections; epidemics; quarantine restrictions; strikes; lockouts; sit-downs; acts of a governmental agency; priorities or privileges established for the manufacture, assemble, or allotment of materials necessary in the Work by order, decree or otherwise of the United States or by any department, bureau, commission, committee, agent, or administrator of any legally constituted public authority; changes in the Work ordered by City insofar as they necessarily require additional time in which to complete the Work; the prevention of Contractor from commencing or prosecuting the Work because of the acts of others, excepting Contractor's subcontractors or suppliers; or the prevention of Contractor from commencing or prosecuting the Work because of a Citywide failure of public utility service.
The term "Excusable Delay" shall specifically not include: (i) any delay that could have been avoided by the exercise of care, prudence, foresight and diligence on the part of Contractor; (ii) any delay in the prosecution of any part of the Work that does not constitute a Controlling Form approved by City Attorney Sept 2021 11
Operation, whether or not such delay is unavoidable; (iii) any reasonable delay resulting from time required by City for review of any Contractor submittals and for the making of surveys, measurements and inspection; and, (iv) any delay arising from an interruption in the prosecution of the Work on account of reasonable interference by other contractors employed by City that does not necessarily prevent the completion of the entire Work within the time specified. Excusable Delays, if any, shall operate only to extend the Completion Date specified in a Task Order (not in excess of the period of such delay as determined by City) and shall not under any circumstances increase the amount City is required to pay Contractor except as otherwise provided in these Contract Documents.
22. CONTRACTOR TO SERVE NOTICE OF DELAYS
Whenever Contractor foresees any delay in the prosecution of the Work, and in any event as soon as possible (not to exceed a period of ten (10) calendar days) after the initial occurrence of any delay that Contractor regards as or may later claim to be an Excusable Delay, the Contractor shall notify the Engineer in writing of such delay and its cause, in order that the Engineer: (i) may take immediate steps to prevent if possible the occurrence or continuance of the delay; or (ii) if this cannot be done, may determine whether the delay is to be considered excusable, how long it continues, and to what extent the prosecution and completion of the Work are delayed thereby. Said written notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth the Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon.
After the completion of any part or whole of the Work, the Engineer, in estimating the amount due Contractor, will assume that any and all delays that may have occurred in its prosecution and completion were not Excusable Delays, except for such delays for which the Contractor has provided timely written notice as required herein, and that the Engineer has found to be excusable. Contractor shall not be entitled to claim Excusable Delay for any delay for which the Contractor failed to provide such timely written notice.
23. EXTENSION OF TIME
If the Contractor complies with Section 22, above, and the Engineer finds a delay claimed by the Contractor to be an Excusable Delay, if the applicable Task Order specifies a Completion Date, the Contractor shall be allowed an extension of time to complete the Work that is proportional to the period of Excusable Delay determined by the Engineer, subject to the issuance by City of a revised Task Order granting such extension of the Completion Date. During a duly authorized extension for an Excusable Delay, City shall not charge liquidated damages against the Contractor for such delay.
If the City extends the time to complete the Work as provided herein, such extension shall in no way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such extension of time relieve or release the sureties of the Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such extension of time. The granting of any extension of time as provided herein shall in no way operate as a waiver on the part of City of its rights under this Contract, excepting only extension of the Completion Date for such period of Excusable Delay as may be determined by the Engineer and approved as provided herein.
24. NO PAYMENT FOR DELAYS
No damages or compensation of any kind shall be paid to Contractor or any subcontractor because of delays in the progress of the Work whether or not such delays qualify for extension of time under this Agreement; except that this provision shall not preclude the recovery of damages for a delay caused by the City that is unreasonable under the circumstances and that Form approved by City Attorney Sept 2021 12
is not within the contemplation of the parties, provided that the Contractor timely submits all such written notice(s) and fully complies with such other procedures as may be specified in the Contract Documents or any Laws or Regulations for Contractor to claim damages for such delay.
25. CHANGES IN THE WORK
Changes in the Work authorized or directed in accordance with the Contract Documents and extensions of time of completion made necessary by reason thereof shall not in any way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such changes in the Work relieve or release the Sureties on Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such change in Work and to any extension of time made by reason thereof.
26. TERMINATION AFTER COMPLETION DATE
In addition to any other rights City may have, if any services or work required by a Task Order are not completed as of the Completion Date specified in the Task Order, if any (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), City may terminate the Contract at any time after the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), by providing a written notice to Contractor specifying the date of termination. Such notice also may specify conditions or requirements that Contractor must meet to avoid termination of the Contract on such date. If Contractor fails to fulfill all such conditions and requirements by such termination date, or, if no such conditions or requirements are specified, Contractor shall cease rendering services and performing work on such termination date, and shall not be entitled to receive any compensation for services rendered or work performed after such termination date. In the event of such termination, Contractor shall remain liable to City for liquidated damages incurred for any period of time prior to the termination date.
In addition to any other charges, withholdings or deductions authorized under the Contract or any Laws or Regulations, if City terminates the Contract pursuant to this section, City may withhold and deduct from any payment and/or retention funds otherwise due Contractor any sum necessary to pay the City's cost of completing or correcting, or contracting for the completion or correction of, any services or work under the Contract that are not completed to the satisfaction of the City or that otherwise are deficient or require correction as of such termination date. Such costs shall include all of the City’s direct and indirect costs incurred to complete or correct such services or work, including the City’s administrative and overhead costs. If the amount of payment(s) and/or retention funds otherwise due the Contractor are insufficient to pay such costs, City shall have the right to recover the balance of such costs from the Contractor and/or its Surety(ies).
27. TERMINATION FOR CONVENIENCE
A. Upon written notice to the Contractor, the City may at any time, without cause and without prejudice to any other right or remedy of the City, elect to terminate a Task Order or the Contract for the convenience of City. In such case, the Contractor shall be paid (without duplication of any items, and after deduction and/or withholding of any amounts authorized to be deducted or withheld by the Contract Documents or any Laws or Regulations):
(1) For Work executed pursuant to approved Task Order(s) in accordance with the Contract Documents prior to the effective date of termination and determined to be acceptable by the Engineer, including fair and reasonable sums for overhead and profit on such Work;
Form approved by City Attorney Sept 2021 13
(2) For reasonable expenses directly attributable to termination.
B. Contractor shall not be paid for any loss of anticipated profits or revenue for any Work not performed prior to termination, nor for any economic loss arising out of or resulting from such termination, except for the payments listed in this section. Contractor’s warranty under Section 14 of this Agreement shall apply, and Contractor shall remain responsible for all obligations related to such warranty, with respect to all portions of the Work performed prior to the effective date of the termination for convenience pursuant to this section. The City shall be entitled to have any or all remaining Work performed by other contractors or by any other means at any time after the effective date of a termination for convenience pursuant to this section.
28. TERMINATION FOR BREACH OF CONTRACT
If Contractor abandons the Work under this Contract, or if the Contract or any portion of the Contract is sublet or assigned without the consent of the City, or if the Engineer determines in the Engineer’s sole discretion that the conditions of the Contract in respect to the rate of progress of the Work are not being fulfilled or any part thereof is unnecessarily delayed, or if Contractor violates or breaches, or fails to execute in good faith, any of the terms or conditions of the Contract, or if Contractor refuses or fails to supply enough properly skilled labor or materials or refuses or fails to make prompt payment to subcontractors for material or labor, or if Contractor disregards any Laws or Regulations or proper instruction or orders of the Engineer, then, notwithstanding any provision to the contrary herein, the City may give Contractor and its Surety(ies) written notification to immediately correct the situation or the Contract shall be terminated.
In the event that such notice is given, and, in the event such situation is not corrected, or arrangements for correction satisfactory to the City are not made, within ten (10) calendar days from the date of such notice or within such other period of time as may be specified by the City in the notice, the Contract shall upon the expiration of said period cease and terminate. In the event of any such termination, City may take over the Work and prosecute the Work to completion, or otherwise, and the Contractor and its Sureties shall be liable to City for any cost occasioned City thereby, as hereinafter set forth.
In the event City completes the Work, or causes the Work to be completed, no payment of any kind shall be made to Contractor until the Work is complete. The cost of completing the Work, including but not limited to, extra costs of project administration and management incurred by City, either direct or indirect, shall be deducted from any sum then due, or that becomes due, to Contractor from City. If sums due to Contractor from City are less than the cost of completing the Work, Contractor and its Sureties shall pay City a sum equal to this difference on demand. In the event City completes the Work, and there is a sum remaining due to Contractor after City deducts the costs of completing the Work, then City shall pay such sum to Contractor. The Contractor and Contractor’s Sureties shall be jointly and severally liable for all obligations imposed on Contractor hereunder.
No act by City before the Work is finally accepted, including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, assessments of liquidated damages, occupation or acceptance of any part of the Work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach of Contractor, shall be construed to be a waiver or estoppel of the City’s right to act pursuant to this Section upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City to terminate the Contract pursuant to this Section and pursuant to Sections 26 and 27 are cumulative and are in addition to all other rights of City pursuant to the Contract and at law or in equity.
Form approved by City Attorney Sept 2021 14
29. CONTRACTOR BANKRUPT
If Contractor should commence any bankruptcy proceeding, or if Contractor is adjudged a bankrupt, or if Contractor makes any assignment for the benefit of creditors, or if a receiver is appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice as provided in Section 28 above.
30. SURETIES’ OBLIGATIONS UPON TERMINATION
If the City terminates the Contract pursuant to Section 28 or Section 29 above:
A. The Surety under Contractor’s performance bond shall be fully responsible for all of the Contractor’s remaining obligations of performance under the Contract as if the Surety were a party to the Contract, including without limitation Contractor’s obligations, as provided in the Contract Documents, to complete and provide a one-year warranty of the entire Work, pay liquidated damages and indemnify, defend and hold harmless City, up to the full amount of the performance bond.
B. The Surety under Contractor’s payment bond shall be fully responsible for the performance of all of the Contractor’s remaining payment obligations for work, services, equipment or materials performed or provided in connection with the Work or any portion thereof, up to the full amount of the payment bond.
31. ACCOUNTING RECORDS OF CONTRACTOR
During performance of the Contract and for a period of three (3) years after completing the entire Work in the final Task Order, Contractor shall maintain all accounting and financial records related to the Contract and performance of the Work in accordance with generally accepted accounting practices, and shall keep and make such records available for inspection and audit by representatives of the City upon reasonable written notice.
32. USE TAX REQUIREMENTS
During the performance of this Agreement, Contractor, for itself, its assignees and successors in interest, agrees as follows:
A. Use Tax Direct Payment Permit: For all leases and purchases of materials, equipment, supplies, or other tangible personal property used to perform the Agreement and shipped from outside California, the Contractor and any subcontractors leasing or purchasing such materials, equipment, supplies or other tangible personal property shall obtain a Use Tax Direct Payment Permit from the California State Board of Equalization (“SBE”) in accordance with the applicable SBE criteria and requirements.
B. The above provisions shall apply in all instances unless prohibited by the funding source for the Agreement.
33. NON-DISCRIMINATION IN EMPLOYEE BENEFITS
This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.54, Non-Discrimination in Employee Benefits by City Contractors. The Contract Documents include a summary of the requirements of Sacramento City Code Chapter 3.54, entitled “Requirements of the Non-Discrimination in Employee Benefits Code.” By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter
3.54. If requested by City, Contractor agrees to promptly provide such documents and Form approved by City Attorney Sept 2021 15
information as may be required by City to verify Contractor’s compliance. Any violation by Contractor of Sacramento City Code Chapter 3.54 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies.
34. CONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENT APPLICATION
PROCESS
This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.62, Procedures for Considering Criminal Conviction Information in the Employment Application Process. The Contract Documents include a summary of the requirements of Sacramento City Code Chapter 3.62, entitled “Ban-The-Box Requirements.” By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62. If requested by City, Contractor agrees to promptly provide such documents and information as may be required by City to verify Contractor’s compliance. Any violation by Contractor of Sacramento City Code Chapter 3.62 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies. Contractor agrees to require its subcontractors to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62, and include these requirements in all subcontracts covered by Sacramento City Code Chapter 3.62.
35. LOCAL BUSINESS ENTERPRISE PARTICIPATION REQUIREMENTS If a Task Order amount is $250,000 or more, a 5% minimum Local Business Enterprise (LBE) Participation is required. Contractor shall comply with this LBE requirement. The Requirements for LBE Participation can be viewed at:
http://portal.cityofsacramento.org/Finance/Procurement/Standard-Agreements. [signature page follows] Form approved by City Attorney Sept 2021 16
IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the Effective Date.
CONTRACTOR
Under penalty of perjury, I certify that the taxpayer identification number and all other information provided here are correct.
BY
DIR Registration #
Title
BY
Federal Tax ID#
State Tax ID#
Title City of Sacramento Business Operation Tax
Certificate No.
Type of Business Entity: Partnership
CITY OF SACRAMENTO
A municipal corporation
BY
__________________________________________ Title
For Howard Chan, City Manager
Original Approved As To Form: Attest: ___________________________________ City Attorney City Clerk 140622
100000381
52-2450493
248-87697
Vice President
03/30/2023
Leavitt United Insurance Services, Inc.
Lic #0J02939
2358 Maritime Dr., Ste 100
Elk Grove CA 95758
Shala Pearson
(916) 790-5863 (888) 329-8842
[email protected]
Parker Landscape Development, Inc.
6011 Franklin Blvd
Sacramento CA 95824
The Travelers Indemnity Company of Connecticut 25658
Everest Premier Insurance Company 10120
Westchester Fire Insurance Company 10030
23/24 Master
A Y Y CO5W913629 03/31/2023 03/31/2024
1,000,000
300,000
5,000
1,000,000
2,000,000
2,000,000
A Y 8105W889729 03/31/2023 03/31/2024
1,000,000
Medical Expenses 5,000
A
10,000
CUP5W936993 03/31/2023 03/31/2024
5,000,000
5,000,000
Follows Form
B Y Y 7600024263231 03/31/2023 03/31/2024
1,000,000
1,000,000
1,000,000
C
Pollution Liability G71157210005 07/12/2022 07/12/2023
Occurrence Limit $2,000,000
Aggregate Limit $2,000,000
On-Call General Contracting Services for Park Renovations & Landscaping Projects Bid #P20191121045. City of Sacramento is Additional Insured per written agreement and policy provisions with regards to the General Liability per the attached forms CG82171204 and CG84700513, and Auto attached form CA83761013. Waiver of Subrogation applies per the attached forms to the General Liability CG84720110 and Work Comp WCON04WSA when required by written contract. Per Project Aggregate applies per the attached form CG82171204. General Liability is Primary and Noncontributory when required in written contract per attached form CG20010413.
City of Sacramento c/o EXIGIS LLC
P.O. Box 4668 ECM- #35050
New York NY 10168
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A : NAIC # NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS: PRODUCER
(A/C, No, Ext): PHONE
INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER: (Per accident)
(Ea accident)
$
$ N / A
SUBR WVDADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY
AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$ OCCUR
CLAIMS-MADE DED RETENTION $ PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $ EACH OCCURRENCE $ DAMAGE TO RENTED PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
- 3
- 3
07/12/2022
Policy #CO5W913629
Do not add this form to
a policy. It is for informational purposes only.
Policy #8105W889729
Do not add this form to a policy. It is for informational purposes only.
Do not add this form to a policy. It is for informational purposes only.
Do not add this form to a policy. It is for informational purposes only.
Policy #8105W889729
Policy # CO5W913629
Policy #CO5W913629
1 2
3 EN WC 5 CA 01 12 Copyright, Everest Reinsurance Co. 2011 Page 1 of 1 EXHIBIT #1
CALIFORNIA SHORT-RATE CANCELATION NOTICE
Please be advised that in the event of cancelation of your policy, the final premium will be based on the time this policy was in force:
If this policy is canceled, final premium will be determined in the following way unless our manuals provide otherwise:
1. If we cancel for reasons other than for non-payment of premium, final premium will be calculated pro rata based on the time this policy was in force. Final premium will not be less than the pro rata share of the minimum premium.
2. If you cancel, or if we cancel due to non-payment of premium, final premium will be more than pro rata; it will be based on the time this policy was in force, and increased by our short-rate cancelation table shown below and procedure. Final premium will not be less than the minimum premium.
Short Rate Cancelation Table
Extended
Number
of Days
Percent
of
Full
Policy
Premium
Extended
Number
of Days
Percent
Of Full
Policy
Premiu
m
Extended
Number
of Days
Percent
of
Full
Policy Premium
1 5% 95-98 37% 219-223 69%
2 6% 99-102 38% 224-228 70%
3-4 7% 103-105 39% 229-232 71%
5-6 8% 106-109 40% 233-237 72%
7-8 9% 110-113 41% 238-241 73%
9-10 10% 114-116 42% 242-246 8
mos.
74%
11-12 11% 117-120 43% 247-250 75%
13-14 12% 121-124 4 mos. 44% 251-255 76%
15-16 13% 125-127 45% 256-260 77%
17-18 14% 128-131 46% 261-264 78%
19-20 15% 132-135 47% 265-269 79%
21-22 16% 136-138 48% 270-273 9
mos.
80%
23-25 17% 139-142 49% 274-278 81%
26-29 18% 143-146 50% 279-282 82%
30-32 1 mo. 19% 147-149 51% 283-287 83%
33-36 20% 150-153 5 mos. 52% 288-291 84%
37-40 21% 154-156 53% 292-296 85%
41-43 22% 157-160 54% 297-301 86%
44-47 23% 161-164 55% 302-305 10
mos.
87%
48-51 24% 165-167 56% 306-310 88%
52-54 25% 168-171 57% 311-314 89%
55-58 26% 172-175 58% 315-319 90%
59-62 2
mos
27% 176-178 59% 320-323 91%
63-65 28% 179-182 6 mos. 60% 324-328 92%
66-69 29% 183-187 61% 329-332 93%
70-73 30% 188-191 62% 333-337 11
mos.
94%
74-76 31% 192-196 63% 338-342 95%
77-80 32% 197-200 64% 343-346 96%
81-83 33% 201-205 65% 347-351 97%
84-87 34% 206-209 66% 352-355 98%
88-91 3
mos
35% 210-214 7 mos. 67% 210-214 99%
92-94 36% 215-218 68% 361-365 12
mos.
100%
4 5
6 TOL 866.671.5042
FAX 619.744.5030
ACMClaims.com CA License #2C37446
Innovative Solutions.
Exceptional Results.
American Claims Management
P.O. Box 85251
San Diego, CA 92186-5251
IMPORTANT - DO NOT DESTROY
KEEP WITH INSURANCE DOCUMENTS
Arrowhead General Insurance Company
TPA: American Claims Management, Inc.
Re: Workers’ Compensation Policy
Dear Policyholder,
Everest National Insurance Company is the Workers’ Compensation carrier for your account and is pleased to have you as a policyholder. Everest National has selected American Claims Management, Inc. as your Workers’ Compensation claim administrator. Arrowhead General Insurance Company is providing you with information regarding your company’s Workers’ Compensation coverage and your obligations under the law.
Policyholder Kits for each location containing posting notices and other required forms will be supplied to you. Medical Provider Panel Card listing medical providers near your location(s), and/or instructions for you to print a Medical Provider Panel Card (if applicable under the state Workers’ Compensation law) will be included in the Policyholder Kit.
Prompt claim reporting may help reduce the cost of your claims.
Please refer to the enclosed “How to Report a Work Related Injury” instructions for details on how to report a loss. A toll free phone number and/or a toll free FAX number is available to you 24 hours a day, 7 days a week to report your claims. Claim management activities will be initiated with your phone call, including completion of the Employer’s First Notice of Loss report, which will be automatically filed with the appropriate state Workers’ Compensation Department on your behalf. A copy will be sent to you for your records.
Please report all claims within 24 hours of the injury. All serious injuries or deaths should be called in immediately. You may be subject to potential fines and/or penalties if you fail to report claims timely.
NOTE: Notice of an on-the-job injury means notice from your employee or someone on his/her behalf, receipt of a doctor’s report, or a request from American Claims Management for your Employer’s First Report of Injury. Please do not wait for medical documentation to report the claim.
If your policy contains coverage in California, claim forms can be accessed at our website:
www.everestnational.com/workcomp
We are here to assist you when one of your employees is injured or makes a claim for Workers’ Compensation benefits. Should you have any questions regarding Workers’ Compensation, your responsibilities under the state Workers’ Compensation laws or the content of this letter, please do not hesitate to contact our office.
Sincerely,
American Claims Management, Inc.
866.671.5042
7.2016
7 8
TOL 866.671.5042
FAX 619.744.5030
ACMClaims.com CA License #2C37446
Innovative Solutions.
Exceptional Results.
American Claims Management
P.O. Box 85251
San Diego, CA 92186-5251
Helpful Contact Information
How to Report a Claim:
Via Phone - #866-671-5042
Via Fax - #619-744-5030
Via Email - [email protected]
Via Internet - www.acmclaims.com
How to Request a Claims Kit:
Email - [email protected]
Medical Provider Network (MPN) Information:
MPN Provider Search: www.everestnational.com/workcomp
MPN Help Desk: [email protected]
Additional Inquiries:
Bill Review Help Desk: [email protected]
Loss Run Requests: [email protected]
General Questions: [email protected]
ACM’s Mailing Address:
PO Box 85251
San Diego, CA 92186
ACM’s Contact Numbers:
Toll Free Number: 866-671-5042
Fax Number: 619-744-5030
9 This literature is descriptive only. The coverage is subject to the language of the policy as issued. Everest refers to the member insurers of Everest Re Group, Ltd: Everest National Insurance Company, Everest Security Insurance Company, Everest Reinsurance Company and Everest Indemnity Insurance Company c/o Mt. McKinley Managers L.L.C. which is a nonadmitted surplus lines insurer operating in all states except Delaware. Not all insurers do business in all jurisdictions. 05/2014
Everest National Custom MPN
Employers may have a direct impact in controlling workers’ compensation costs by implementing and using the Everest MPN. Injured workers are treated by a network of medical providers who are properly credentialed and competent to treat work injuries.
When medical care is provided through the MPN, employers may experience as much as a 25-30% average reduction in the overall claim costs as reported by the California Workers’ compensation Institute. By using a select group of highly qualified medical providers, the Everest MPN provides exciting opportunities to deliver quality treatment promptly and return your injured workers to productive employment. Everybody benefits by participating in the MPN. 8,920 providers in California
o US Healthworks, Concentra and Kaiser deliver Everest prompt care and service standards o Statewide access to occupational providers
o Carefully selected specialists and facilities
o Preferred providers for diagnostics, medical equipment, pharmacy and therapy Preferred Provider Network (all other states)
Rather than the largest number of providers in California … we have the RIGHT providers. Everest National monitors provider billings to make sure they are appropriate and necessary. We work with physicians that perform only appropriate and necessary medical care, not rely on discounts for unneeded procedures and reports. This is another way we help our policyholders keep their claim costs down.
To lookup MPN providers in your area, go to: www.everestnational.com/workcomp. The MPN is overseen by our Managed Care department and we have an Ombudsman onsite to assist with your MPN questions.
The MPN is an essential component of your Everest policy. Have questions? Give us a call.
Everest National MPN Ombudsman
800-608-9822 or [email protected]
10 everestregroup.com
All employers in the State of California that use employee labor must purchase and maintain Workers’ Compensation insurance. This requirement extends to contracting with and hiring subcontractors. Here are some steps you can take to better manage your insurance and safety program when it comes to working with subcontractors.
Selecting a Subcontractor
Before a subcontractor begins work, confirm they are licensed and insured. You should only contract with licensed and insured subcontractors. Not having valid Workers’ Compensation coverage renders a subcontractor’s license VOID. (Business and Profession Code 7152.2) • Verify the subcontractors license. Contact the Contractors State License Board (CSLB). Visit http://www.cslb.ca.gov or call (800) 321 CSLB (2752). • Verify the subcontractor is insured. Request a copy of their Certificate of Insurance that demonstrates Workers’ Compensation (WC) and General Liability (GL) insurance is current and active. • Read the Certificate of Insurance and confirm the following: • Named Insured: Verify the certificate shows the subcontractors company as the named insured. • Types of Insurance Coverage: At a minimum they should have WC and GL coverage with limits of liability that adhere to the state minimum. • Dates of Coverage: Make sure the policy is active, that the policy has not lapsed, and the dates extend through to the end of the project or contract. • Confirm Coverage: Call the subcontractor’s agent or the insurance company to confirm information. • Request Updated Certificates or Insurance: If you work with the same subcontractors from year to year, mark your calendar to request updated certificates annually. • What if a subcontractor is unlicensed and not insured? • “I’m a sole owner and exempt from insurance.” If this owner is working for you, most of the time they become a statutory employee and they would be covered under your Workers’ Compensation policy. • Also, CA Labor Code 2750.5 presumes that an unlicensed person who performs work requiring a license is an employee and not an Independent contractor. Verify licensing and insurance coverage! What an Uninsured Subcontractor Can Cost You
• Legal Costs: The CSLB may initiate disciplinary action which may require you to hire legal counsel. • Increase in Insurance Premiums: As the uninsured subcontractor may be considered an employee, payments made to the uninsured subcontractor will be identified when your WC policy is audited resulting in additional premium. • Claims Experience and Increased Costs: Your WC insurance will be responsible for any injury to the subcontractor and their employees. Any claims paid under your policy will negatively affect your claims experience and all claims paid will apply to your experience modification factor for three years, which can increase your insurance costs. • Increase in Employment Taxes: You may be liable to the Employment Development Department for any unpaid contributions and tax withholdings for the uninsured subcontractor’s employees. • Loss of Coverage: Under the California Insurance Code Sections 331 and 359, when an insured has misrepresented or concealed facts that are material to the application for insurance, the underwriter may rescind coverage or cancel the policy. Review your WC policy application, did you say yes or no to the use of subcontractors or sublet of work without certificates of insurance? Everest Insurance® offers loss control information to improve your loss prevention efforts. If you would like to review these publications, visit our web site at www.everestregroup.com. Loss Control is a daily responsibility of your individual management. This publication is not a substitute for your own loss control program. The information that is provided in this alert should not be considered as all encompassing, or suitable for all situations, conditions, or environments. Each organization is responsible for implementing their own safety, injury, and illness prevention program and should consult with legal, medical, technical, or other advisors to reaffirm the information contained in this Best Practice. The information contained in this publication is intended for general informational purposes only and is not intended to constitute legal advice or opinions. You should contact an attorney if you need legal advice or if you have any questions concerning your obligations under any law, statute or code identified in this publication.
Everest Insurance® Loss Control Best Practices
THE PERILS OF USING UNLICENSED SUBCONTRACTORS
Everest Insurance®markets property, casualty, specialty and other lines of admitted and non-admitted direct insurance on behalf of Re Group, Ltd., and its affiliated companies. Additional information on Everest Re Group companies can be found at the Group’s web site at www.everestregroup.com. All issuing companies may not do business in all jurisdictions. This literature is descriptive only. All coverage is subject to the language of the policy as issued. 11 12
13 Form approved by City Attorney Sept 2021 1
ON-CALL GENERAL CONTRACTING SERVICES FOR PARK OPERATION PROJECTS (BID #P2 191311001)
AGREEMENT
(Construction Contract Over $25,000)
THIS AGREEMENT entered into on , 202 (“Effective ate”), is made and entered into between the CITY OF SACRAMENTO, a municipal corporation (“City”), and SAENZ LANDSCAPE CONSTRUCTION COMPANY, 12167 FOLSOM BLVD, SUITE D, RANCHO CORDOVA, CA 95742, a California Partnership (“Contractor”) in the amount of $ ,000.
The City and Contractor mutually agree as follows:
1. CONTRACT DOCUMENTS
The Contract Documents, sometimes also referred to as the “Contract,” consist of the following items, which are hereby incorporated by reference as if set forth in full in this Agreement:
Notice to Contractors
Proposal Form submitted by the Contractor
Instructions to Bidders
Subcontractor and Local Business Enterprise Participation Form Drug-Free Workplace Policy and Affidavit
Construction and Demolition (C&D) Debris Recycling Requirements Workers’ Compensation Insurance Certification
Federal or State funding requirements (if applicable)
Labor Compliance Requirements
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Notice Regarding Assembly Bill 626
Addenda, if any
Standard Specifications
Special Provisions set forth in a Task Order
Plans and Technical Specifications set forth in a Task Order The drawings and other data and all developments thereof prepared by City pursuant to the Contract
Any modifications of any of the foregoing made or approved by City, including but not limited to duly authorized change orders
Unless specifically noted otherwise, references to the “Standard Specifications” shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento dated November 2020, and any subsequent amendments thereto approved by the Sacramento City Council or the Sacramento City Manager. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The table of contents, titles and headings contained in the Contract Documents are provided solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretation of the provisions to which they refer.
2. DEFINITIONS
Unless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement.
Form approved by City Attorney Sept 2021 2
3. AGREEMENT CONTROLS
In the event of a conflict between any of the terms and conditions set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail, except that the provisions of any duly authorized change order shall prevail over any conflicting provisions of this Agreement.
4. SCOPE AND TERM OF CONTRACT
A. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, material and transportation necessary to perform and complete in a good and workmanlike manner to the satisfaction of City, all the Work called for in the Contract Documents entitled:
ON-CALL GENERAL CONTRACTING SERVICES FOR PARK OPERATION PROJECTS (BID #P2 191311001)
Contractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.
B. A general scope of work is contained in the Technical Specifications and may be further defined in a Task Order. Each Task Order will detail the Work for each job and may involve varying levels of effort. City will issue to Contractor a request for services, Contractor shall provide a price proposal, and City may award the Task Order to Contractor based on its price proposal. Contractor acknowledges that City has the right to assign a Task Order to a different contractor and not assign any Task Orders to Contractor for any reason. The need for services is based on the need for renovations, repairs and maintenance of City facilities and the need may occur irregularly and not continuously, and no services may be required under this Contract. All such Task Orders will constitute part of this Contract, and the Contractor shall perform, comply with and be subject to all provisions of this Contract. Except as set forth in a Task Order, Contractor shall, at its sole cost and expense, furnish all materials, supplies and equipment that may be required for Contractor to perform the Work pursuant to the Task Order. City shall furnish to Contractor only the materials, supplies and equipment listed as “City Furnished” in a Task Order according to any terms and conditions set forth in the Task Order.
C. Prior to the performance of any Work on a Task Order that exceeds $25,000, Contractor shall provide performance and payment bonds on City-approved forms for the amount of the Task Order.
D. The initial term of this Contract is two (2) years from the Effective Date with an option to extend for an additional three years for a total five (5) year contract.
5. CONTRACT AMOUNT AND PAYMENTS
A. Prevailing Wages - Alteration, installation and repair work of City facilities constitute “public works” under California Labor Code section 1720 et seq., and are subject to the requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code and its implementing regulations set forth in Title 8 of the California Code of Regulations.
Contractor and any subcontractor performing any Services shall comply with all applicable requirements of the California Labor Code and the Sacramento City Code.
Pursuant to Sacramento City Code Section 3.60.180, Contractor is required and agrees to pay the State of California, Department of Industrial Relations prevailing wage rates for covered trades employed for any construction work over $25,000 or any alteration, demolition, repair, or maintenance work in an amount exceeding $15,000. The Form approved by City Attorney Sept 2021 3
prevailing wage rates may be found at http://www.dir.ca.gov/dlsr/pwd/. Contractor and every lower-tier subcontractor shall submit certified payrolls and labor compliance documentation electronically when and as required by City. Contractor is responsible for compliance with Sacramento City Code section 3.60.180, and shall include these requirements in every subcontract or subcontract.
Apprentices - Contractor agrees to utilize apprentices as required by the State of California Labor Code. The Contractor and any subcontractor performing work will be subject to penalties for apprenticeship violations in accordance with Labor Code section 1777.7.
DIR Registration - California Labor Code section 1725.5 requires Contractor and any subcontractor performing any work under this Agreement to be currently registered with the California Department of Industrial Relations (DIR), as specified in Labor Code section 1725.5. Labor Code section 1771.1 provides that a contractor or subcontractor shall not be qualified to engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Labor Code section 1725.5. Prior to the performance of work by any subcontractor under this Agreement, Contractor shall furnish City the subcontractor’s current DIR registration number.
Penalties - This Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4. The Contractor and any subcontractor performing work will be subject to withholding and penalties for violation of prevailing wage requirements in accordance with applicable law, including Labor Code sections 1726, 1741, 1771.5, and 1775, and City Code section 3.60.180.
Payment for each Task Order shall be authorized by issuance of the Task Order as provided in Section 4, above, and City shall have no responsibility or liability for any payment not authorized by a City-issued Task Order. All payments shall be made in accordance with the schedule and procedures set forth in the Contract Documents and subject to deductions, withholdings and additions as specified in the Contract Documents.
Unit prices and hourly rates shall not exceed the amount(s) set forth in Contractor’s Proposal Form, provided that for each year the Contract term is extended, to account for inflation, the unit prices and hourly rates set forth in Contractor’s Proposal Form shall be increased by an amount equal to three (3) percent or the percentage increase for the previous 12 month period in the Consumer Price Index (CPI), San Francisco area, whichever is less.
Subject to deductions, withholdings and additions as specified in the Contract Documents, Contractor shall be paid the sum computed at such unit prices or hourly rates, or computed at a different price if such different price is determined by City in accordance with the Standard Specifications, based on the actual hours worked or actual amount of each such unit price item performed and/ or furnished and incorporated in the work as set forth in the Task Order.
Maximum Annual Payment: The total amount paid for all work authorized by Task Orders during each one-year term of the Contract shall not exceed $1 ,000.
6. PROGRESS PAYMENTS
Form approved by City Attorney Sept 2021 4
Subject to the terms and conditions of the Contract, City shall cause payments to be made upon demand of Contractor as follows:
A. On or about the first of the month, the Engineer shall present to the Contractor a statement (in the format required by City) showing the amount of labor and materials incorporated in the Work through the twentieth (20) calendar day of the preceding month. After both Contractor and Engineer approve the statement in writing, and the City’s labor compliance officer provides written approval, the City shall issue a certificate for ninety-five (95) percent of the amount it shall find to be due, subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations.
B. No inaccuracy or error in said monthly estimates shall operate to release Contractor from damages arising from such Work or from enforcement of each and every provision of the Contract Documents, and City shall have the right subsequently to correct any error made in any estimate for payment.
C. Contractor shall not be paid for any defective or improper Work.
D. The remaining five (5) percent of the value of the Work performed under the Contract, if unencumbered and subject to any deductions or withholdings authorized or required under the Contract or any applicable Laws or Regulations, shall be released not later than sixty (60) days after completion and final acceptance by City of the Work specified in the Task Order. Acceptance by Contractor of the final payment for a Task Order shall constitute a waiver of all claims against the City arising under the Contract Documents, except for disputed claims in stated amounts that the Contractor specifically reserves in writing, but only to the extent that the Contractor has complied with all procedures and requirements applicable to the presentation and processing of such claim(s) under the Contract Documents. Contractor shall be entitled to substitute securities for retention or to direct that payments of retention be made into escrow, as provided in Public Contract Code Section 22300, upon execution of the City’s Escrow Agreement for Security Deposits in Lieu of Retention.
E. The parties agree that, for purposes of the timely progress payment requirements specified in Public Contract Code Section 20104.50, the date that the City receives a statement jointly approved as provided above shall be deemed to constitute the date that City receives an undisputed and properly submitted payment request from the Contractor. Progress payments not made within 30 days after this date may be subject to payment of interest as provided in Public Contract Code Section 20104.50.
F. Refer to Monthly Pay Request Processing Procedures for submissions. Questions can be submitted to the Project Manager or Contracts & Compliance Specialist.
7. RETENTION OF SUMS CHARGED AGAINST CONTRACTOR
When, under the provisions of this Contract or any applicable Laws or Regulations, City is authorized or required to withhold, deduct or charge any sum of money against Contractor, City may deduct and retain the amount of such charge from the amount of the next succeeding progress estimate(s), or from any other moneys due or that may become due Contractor from City. If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges, City shall have the right to recover the balance from Contractor or its Sureties.
8. COMMENCEMENT AND PROSECUTION OF WORK
Form approved by City Attorney Sept 2021 5
If City issues a Task Order to Contractor, the Work shall not commence until City issues a Notice to Proceed. Once City issues a Notice to Proceed, Contractor shall commence work not later than ten (10) working days from the date of the Task Order, unless a shorter or longer period is specified in the Task Order. The continuous prosecution of Work by Contractor shall be subject only to Excusable Delays as defined in this Agreement.
9. TIME OF COMPLETION
Contractor shall diligently prosecute the Work to final completion. If so specified in a Cityissued Task Order, the Work required by the Task Order shall be brought to completion in the manner provided for in the Contract Documents on or before the date specified in the Task Order (hereinafter called the “Completion Date”) unless extensions of time are granted in accordance with the Contract Documents.
Failure to complete such Work by the Completion Date and in the manner provided for in the Contract Documents shall subject Contractor to liquidated damages as provided in this Agreement. Time is and shall be of the essence in the performance of the Contract and the Work.
10. PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORK
The payment of any progress payment, or the acceptance thereof by Contractor, shall not constitute acceptance of the Work or any portion thereof and shall in no way reduce the liability of Contractor to replace unsatisfactory work or material, whether or not the unsatisfactory character of such work or material was apparent or detected at the time such payment was made.
11. ACCEPTANCE NOT RELEASE
Contractor shall correct immediately any defective or imperfect work or materials that may be discovered before final acceptance any Work, whether or not such defect or imperfection was previously noticed or identified by the City. The inspection of the Work, or any part thereof, shall not relieve Contractor of any of its obligations to perform satisfactory work as herein specified.
Failure or neglect on the part of City or any of its officers, employees or authorized agents to discover, identify, condemn or reject defective or imperfect work or materials shall not be construed to imply an acceptance of such work or materials, nor shall such failure or neglect be construed as barring City from enforcing Contractor’s warranty(ies) or otherwise recovering damages or such a sum of money as may be required to repair or rebuild the defective or imperfect work or materials whenever City may discover the same, subject only to any statutes of limitation that may apply to any such claim.
12. CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART The City shall have the right at any time to enter upon the Work and perform work not covered by this Contract, or to occupy and use a portion of the Work, prior to the date of acceptance of the Work, without in any way relieving Contractor of any obligations under this Contract.
13. NO WAIVER OF REMEDIES
Neither the inspection by City, its officers, employees or agents, nor any certificate or other approval for the payment of money, nor any payment for, nor acceptance of the whole or any part of the Work by City, nor any extensions of time, nor any position taken by City, its officers, employees or its agents shall operate as a waiver of any provision of the Contract Documents nor of any power herein reserved to City or any right to damages herein provided, nor shall any Form approved by City Attorney Sept 2021 6
waiver of any breach of this Agreement be held to be a waiver of any other or subsequent breach. All remedies provided in the Contract Documents shall be taken and construed as cumulative; in addition to each and every other remedy herein provided, the City shall have any and all equitable and legal remedies that it would in any case have.
14. WARRANTY
Except as otherwise expressly provided in the Contract Documents, and excepting only items of routine maintenance, ordinary wear and tear and unusual abuse or neglect by City, Contractor warrants and guarantees all Work executed and all supplies, materials and devices of whatsoever nature incorporated in or attached to the Work, or otherwise provided as a part of the Work pursuant to the Contract, to be absolutely free of all defects of workmanship and materials for a period of one year after City acceptance of the Work performed for the applicable job/task order. Contractor shall repair or replace all work or material, together with any other work or material that may be displaced or damaged in so doing, that may prove defective in workmanship or material within this one year warranty period without expense or charge of any nature whatsoever to City.
In the event that Contractor shall fail to comply with the conditions of the foregoing warranty within ten (10) days after being notified of the defect in writing, City shall have the right, but shall not be obligated, to repair, or obtain the repair of, the defect and Contractor shall pay to City on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in workmanship or material covered by the foregoing warranty results in a condition that constitutes an immediate hazard to public health or safety, or any property interest, or any person, City shall have the right to immediately repair, or cause to be repaired, such defect, and Contractor shall pay to City on demand all costs and expense of such repair. The foregoing statement relating to hazards to health, safety or property shall be deemed to include both temporary and permanent repairs that may be required as determined in the sole discretion and judgment of City.
In addition to the above, the Contractor shall make a written assignment of all manufacturer’s and other product warranties to the City, prior to City acceptance of the Work performed for the applicable job/task order.
The Contractor’s Performance Bond shall secure the performance of the Contractor’s obligations under this Section 14, and the Contractor and its Surety shall be jointly and severally liable for these obligations.
15. LIQUIDATED DAMAGES IF WORK NOT COMPLETED ON TIME
A. The actual fact of the occurrence of damages and the actual amount of the damages that City would suffer if the Work specified in a Task Order were not completed by the Completion Date specified therein are dependent upon many circumstances and conditions that could prevail in various combinations, and for this reason, it is impracticable and extremely difficult to fix the actual damages. Damages that City would suffer in the event of such delay include: loss of the use of the project; expenses of prolonged assignment to the project of an architectural and/or engineering staff; prolonged costs of administration, inspection, and supervision; increased operational expenses and/or impaired operation of other facilities dependent upon completion of the project; and the loss and inconvenience suffered by the public within the City of Sacramento by reason of the delay in the completion of the project or portion thereof.
Accordingly, the parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the amount(s) set forth herein as liquidated damages reflect the parties’ best efforts at the time of entering into the Contract to estimate the damages that may be incurred by City and the public due to the Contractor’s delay in completion of the Work specified in a Task Order by the Form approved by City Attorney Sept 2021 7
Completion Date specified therein, and shall be presumed to be the amount of damages sustained by the failure of Contractor to complete such Work within such time.
B. If a Task Order specifies a Completion Date for the Work required by the Task Order, Contractor shall pay liquidated damages to City for failure to complete such Work by the Completion Date (as extended in accordance with the Contract Documents, if applicable) in the amount of $1,000.00 for each calendar day after the Completion Date (as extended in accordance with the Contract Documents, if applicable), continuing to the time at which such Work is completed. Such amount is the actual cash value agreed upon by the City and Contractor as the loss to City and the public resulting from Contractor's default.
C. In the event Contractor shall become liable for liquidated damages, City, in addition to all other remedies provided by law, shall have the right to withhold any and all payments that otherwise would be or become due Contractor until the liability of Contractor under this section is finally determined. City shall have the right to use and apply such payments, in whole or in part, to reimburse City for all liquidated damages due or to become due to City. Any remaining balance of such payments shall be paid to Contractor only after discharge in full of all liability incurred by Contractor under this section or otherwise under any provision of the Contract Documents or any applicable Law or Regulation. If the sum so retained by City is not sufficient to discharge all such liabilities of Contractor, Contractor shall continue to remain liable to City until all such liabilities are satisfied in full. No failure by City to withhold any payment as specified above shall in any manner be construed to constitute a release of any such liabilities nor a waiver of the City’s right to withhold payment for such liabilities.
16. INDEMNITY AND HOLD HARMLESS
A. Contractor shall defend, hold harmless and indemnify the City, its officers, employees, and agents, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the Work, including, but not limited to, any fees and/or costs reasonably incurred by City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform the Work by the Contractor, any subcontractor or agent, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not (i) such Liabilities are caused in part by a party indemnified hereunder, or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense to the extent arising from (i) the sole negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, or (ii) the active negligence of City.
B. The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement shall not affect or limit any of City’s rights under this Section 16, nor shall the limits of such insurance limit the liability of Contractor hereunder. The provisions of this Section 16 shall survive any expiration or termination of the Contract.
17. CONTRACTOR SHALL ASSUME RISKS
Form approved by City Attorney Sept 2021 8
Until the completion and final acceptance by City of all Work under this Contract, the Work shall be under Contractor's responsible care and charge, and Contractor, at no cost to City, shall rebuild, repair, restore and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the Work.
18. GENERAL LIABILITY OF CONTRACTOR
Except as otherwise herein expressly stipulated, Contractor shall perform all the Work and furnish all the labor, materials, tools, equipment, apparatus, facilities, transportation, power and light, and appliances, necessary or proper for performing and completing the Work herein required in the manner and within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as a limitation or restriction of any general liability or duty of Contractor, and any reference to any specific duty or liability shall be construed to be solely for the purpose of explanation.
19. INSURANCE
During the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19.
Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Work performed by Contractor under this Contract. No additional compensation will be provided for Contractor’s insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City.
It is understood and agreed by the Contractor that its liability to the City shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract.
A. Minimum Scope & Limits of Insurance Coverage
(1) Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of Contractor and its subcontractors, products and completed operations of Contractor and its subcontractors, and premises owned, leased, or used by Contractor and its subcontractors, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide contractual liability and products and completed operations coverage for the term of the policy.
(2) Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage, and personal injury, with limits of not less than one million dollars ($1,000,000) per accident. The policy shall provide coverage for owned, nonowned, and/or hired autos as appropriate to the operations of the Contractor. (3) Workers’ Compensation Insurance with statutory limits, and Employers’ Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers’ Compensation policy shall include a waiver of subrogation in favor of the City.
B. Additional Insured Coverage
Form approved by City Attorney Sept 2021 9
(1) Commercial General Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Contractor and its subcontractors; products and completed operations of Contractor and its subcontractors; and premises owned, leased, or used by Contractor and its subcontractors.
(2) Automobile Liability Insurance: The City, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects auto liability.
C. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
(1) Contractor’s insurance coverage, including excess insurance, shall be primary insurance as respects City, its officials, employees, and volunteers. Any insurance or self-insurance maintained by City, its officials, employees, or volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. (2) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, employees, or volunteers. (3) Coverage shall state that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
(4) City will be provided with thirty (30) days written notice of cancellation or material change in the policy language or terms.
D. Acceptability of Insurance
Insurance shall be placed with insurers with a Bests’ rating of not less than A:VI. Selfinsured retentions, policy terms or other variations that do not comply with the requirements of this Section 3 must be declared to and approved by the City in writing prior to execution of this Contract.
E. Verification of Coverage
(1) Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. The certificates and endorsements shall be forwarded to the City representative named in Exhibit A. Copies of policies shall be delivered to the City on demand. Certificates of insurance shall be signed by an authorized representative of the insurance carrier.
(2) For all insurance policy renewals during the term of this Contract, Contractor shall send insurance certificates reflecting the policy renewals directly to:
City of Sacramento
c/o EXIGIS LLC
P.O. Box 947
Murrieta, CA 92564
Form approved by City Attorney Sept 2021 10
Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to:
[email protected]
(3) The City may withdraw its offer of contract or cancel this Contract if the certificates of insurance and endorsements required have not been provided prior to execution of this Contract. The City may withhold payments to Contractor or cancel the Contract if the insurance is canceled or Contractor otherwise ceases to be insured as required herein.
F. Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in subsection A, above.
20. FAILURE TO MAINTAIN BONDS OR INSURANCE
If, at any time during the performance of this Contract, Contractor fails to maintain any item of the bonds and/or insurance required under the Contract in full force and effect, Contractor shall immediately suspend all work under the Contract and notify City in writing of such failure.
After such notice is provided, or if City discovers such failure and notifies Contractor, the City thereafter may withhold all Contract payments due or that become due until notice is received by City that such bonds and/or insurance have been restored in full force and effect and that the premiums therefore have been paid for a period satisfactory to the Division of Risk Management. Contractor shall not resume work until notified by City to do so, and the City shall have no responsibility or liability for any costs incurred by Contractor as a result of such suspension of Work.
In addition to the foregoing, any failure to maintain any item of the required bonds and/or insurance at any time during the performance of this Contract will be sufficient cause for termination of the Contract by City.
The Contractor shall be solely responsible for, and shall defend, indemnify and hold harmless the City, its officers, employees and agents against and from, any and all damages, claims, losses, actions, costs or other expenses of any kind incurred by any party as a direct or indirect result of any suspension of Work or termination of the Contract under the provisions of this Section.
21. EXCUSABLE DELAYS
For the purpose of these Contract Documents, the term "Excusable Delay" shall mean, and is limited to, delay caused directly by: acts of God; acts of a public enemy; fires; inclement weather as determined by the Engineer; riots; insurrections; epidemics; quarantine restrictions; strikes; lockouts; sit-downs; acts of a governmental agency; priorities or privileges established for the manufacture, assemble, or allotment of materials necessary in the Work by order, decree or otherwise of the United States or by any department, bureau, commission, committee, agent, or administrator of any legally constituted public authority; changes in the Work ordered by City insofar as they necessarily require additional time in which to complete the Work; the prevention of Contractor from commencing or prosecuting the Work because of the acts of others, excepting Contractor's subcontractors or suppliers; or the prevention of Contractor from commencing or prosecuting the Work because of a Citywide failure of public utility service.
The term "Excusable Delay" shall specifically not include: (i) any delay that could have been avoided by the exercise of care, prudence, foresight and diligence on the part of Contractor; (ii) any delay in the prosecution of any part of the Work that does not constitute a Controlling Form approved by City Attorney Sept 2021 11
Operation, whether or not such delay is unavoidable; (iii) any reasonable delay resulting from time required by City for review of any Contractor submittals and for the making of surveys, measurements and inspection; and, (iv) any delay arising from an interruption in the prosecution of the Work on account of reasonable interference by other contractors employed by City that does not necessarily prevent the completion of the entire Work within the time specified. Excusable Delays, if any, shall operate only to extend the Completion Date specified in a Task Order (not in excess of the period of such delay as determined by City) and shall not under any circumstances increase the amount City is required to pay Contractor except as otherwise provided in these Contract Documents.
22. CONTRACTOR TO SERVE NOTICE OF DELAYS
Whenever Contractor foresees any delay in the prosecution of the Work, and in any event as soon as possible (not to exceed a period of ten (10) calendar days) after the initial occurrence of any delay that Contractor regards as or may later claim to be an Excusable Delay, the Contractor shall notify the Engineer in writing of such delay and its cause, in order that the Engineer: (i) may take immediate steps to prevent if possible the occurrence or continuance of the delay; or (ii) if this cannot be done, may determine whether the delay is to be considered excusable, how long it continues, and to what extent the prosecution and completion of the Work are delayed thereby. Said written notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth the Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon.
After the completion of any part or whole of the Work, the Engineer, in estimating the amount due Contractor, will assume that any and all delays that may have occurred in its prosecution and completion were not Excusable Delays, except for such delays for which the Contractor has provided timely written notice as required herein, and that the Engineer has found to be excusable. Contractor shall not be entitled to claim Excusable Delay for any delay for which the Contractor failed to provide such timely written notice.
23. EXTENSION OF TIME
If the Contractor complies with Section 22, above, and the Engineer finds a delay claimed by the Contractor to be an Excusable Delay, if the applicable Task Order specifies a Completion Date, the Contractor shall be allowed an extension of time to complete the Work that is proportional to the period of Excusable Delay determined by the Engineer, subject to the issuance by City of a revised Task Order granting such extension of the Completion Date. During a duly authorized extension for an Excusable Delay, City shall not charge liquidated damages against the Contractor for such delay.
If the City extends the time to complete the Work as provided herein, such extension shall in no way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such extension of time relieve or release the sureties of the Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such extension of time. The granting of any extension of time as provided herein shall in no way operate as a waiver on the part of City of its rights under this Contract, excepting only extension of the Completion Date for such period of Excusable Delay as may be determined by the Engineer and approved as provided herein.
24. NO PAYMENT FOR DELAYS
No damages or compensation of any kind shall be paid to Contractor or any subcontractor because of delays in the progress of the Work whether or not such delays qualify for extension of time under this Agreement; except that this provision shall not preclude the recovery of damages for a delay caused by the City that is unreasonable under the circumstances and that Form approved by City Attorney Sept 2021 12
is not within the contemplation of the parties, provided that the Contractor timely submits all such written notice(s) and fully complies with such other procedures as may be specified in the Contract Documents or any Laws or Regulations for Contractor to claim damages for such delay.
25. CHANGES IN THE WORK
Changes in the Work authorized or directed in accordance with the Contract Documents and extensions of time of completion made necessary by reason thereof shall not in any way release any warranty or guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such changes in the Work relieve or release the Sureties on Bonds provided pursuant to the Contract Documents. By executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such change in Work and to any extension of time made by reason thereof.
26. TERMINATION AFTER COMPLETION DATE
In addition to any other rights City may have, if any services or work required by a Task Order are not completed as of the Completion Date specified in the Task Order, if any (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), City may terminate the Contract at any time after the Completion Date (as adjusted by any extensions of time for Excusable Delays granted pursuant to the Contract Documents), by providing a written notice to Contractor specifying the date of termination. Such notice also may specify conditions or requirements that Contractor must meet to avoid termination of the Contract on such date. If Contractor fails to fulfill all such conditions and requirements by such termination date, or, if no such conditions or requirements are specified, Contractor shall cease rendering services and performing work on such termination date, and shall not be entitled to receive any compensation for services rendered or work performed after such termination date. In the event of such termination, Contractor shall remain liable to City for liquidated damages incurred for any period of time prior to the termination date.
In addition to any other charges, withholdings or deductions authorized under the Contract or any Laws or Regulations, if City terminates the Contract pursuant to this section, City may withhold and deduct from any payment and/or retention funds otherwise due Contractor any sum necessary to pay the City's cost of completing or correcting, or contracting for the completion or correction of, any services or work under the Contract that are not completed to the satisfaction of the City or that otherwise are deficient or require correction as of such termination date. Such costs shall include all of the City’s direct and indirect costs incurred to complete or correct such services or work, including the City’s administrative and overhead costs. If the amount of payment(s) and/or retention funds otherwise due the Contractor are insufficient to pay such costs, City shall have the right to recover the balance of such costs from the Contractor and/or its Surety(ies).
27. TERMINATION FOR CONVENIENCE
A. Upon written notice to the Contractor, the City may at any time, without cause and without prejudice to any other right or remedy of the City, elect to terminate a Task Order or the Contract for the convenience of City. In such case, the Contractor shall be paid (without duplication of any items, and after deduction and/or withholding of any amounts authorized to be deducted or withheld by the Contract Documents or any Laws or Regulations):
(1) For Work executed pursuant to approved Task Order(s) in accordance with the Contract Documents prior to the effective date of termination and determined to be acceptable by the Engineer, including fair and reasonable sums for overhead and profit on such Work;
Form approved by City Attorney Sept 2021 13
(2) For reasonable expenses directly attributable to termination.
B. Contractor shall not be paid for any loss of anticipated profits or revenue for any Work not performed prior to termination, nor for any economic loss arising out of or resulting from such termination, except for the payments listed in this section. Contractor’s warranty under Section 14 of this Agreement shall apply, and Contractor shall remain responsible for all obligations related to such warranty, with respect to all portions of the Work performed prior to the effective date of the termination for convenience pursuant to this section. The City shall be entitled to have any or all remaining Work performed by other contractors or by any other means at any time after the effective date of a termination for convenience pursuant to this section.
28. TERMINATION FOR BREACH OF CONTRACT
If Contractor abandons the Work under this Contract, or if the Contract or any portion of the Contract is sublet or assigned without the consent of the City, or if the Engineer determines in the Engineer’s sole discretion that the conditions of the Contract in respect to the rate of progress of the Work are not being fulfilled or any part thereof is unnecessarily delayed, or if Contractor violates or breaches, or fails to execute in good faith, any of the terms or conditions of the Contract, or if Contractor refuses or fails to supply enough properly skilled labor or materials or refuses or fails to make prompt payment to subcontractors for material or labor, or if Contractor disregards any Laws or Regulations or proper instruction or orders of the Engineer, then, notwithstanding any provision to the contrary herein, the City may give Contractor and its Surety(ies) written notification to immediately correct the situation or the Contract shall be terminated.
In the event that such notice is given, and, in the event such situation is not corrected, or arrangements for correction satisfactory to the City are not made, within ten (10) calendar days from the date of such notice or within such other period of time as may be specified by the City in the notice, the Contract shall upon the expiration of said period cease and terminate. In the event of any such termination, City may take over the Work and prosecute the Work to completion, or otherwise, and the Contractor and its Sureties shall be liable to City for any cost occasioned City thereby, as hereinafter set forth.
In the event City completes the Work, or causes the Work to be completed, no payment of any kind shall be made to Contractor until the Work is complete. The cost of completing the Work, including but not limited to, extra costs of project administration and management incurred by City, either direct or indirect, shall be deducted from any sum then due, or that becomes due, to Contractor from City. If sums due to Contractor from City are less than the cost of completing the Work, Contractor and its Sureties shall pay City a sum equal to this difference on demand. In the event City completes the Work, and there is a sum remaining due to Contractor after City deducts the costs of completing the Work, then City shall pay such sum to Contractor. The Contractor and Contractor’s Sureties shall be jointly and severally liable for all obligations imposed on Contractor hereunder.
No act by City before the Work is finally accepted, including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, assessments of liquidated damages, occupation or acceptance of any part of the Work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach of Contractor, shall be construed to be a waiver or estoppel of the City’s right to act pursuant to this Section upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City to terminate the Contract pursuant to this Section and pursuant to Sections 26 and 27 are cumulative and are in addition to all other rights of City pursuant to the Contract and at law or in equity.
Form approved by City Attorney Sept 2021 14
29. CONTRACTOR BANKRUPT
If Contractor should commence any bankruptcy proceeding, or if Contractor is adjudged a bankrupt, or if Contractor makes any assignment for the benefit of creditors, or if a receiver is appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice as provided in Section 28 above.
30. SURETIES’ OBLIGATIONS UPON TERMINATION
If the City terminates the Contract pursuant to Section 28 or Section 29 above:
A. The Surety under Contractor’s performance bond shall be fully responsible for all of the Contractor’s remaining obligations of performance under the Contract as if the Surety were a party to the Contract, including without limitation Contractor’s obligations, as provided in the Contract Documents, to complete and provide a one-year warranty of the entire Work, pay liquidated damages and indemnify, defend and hold harmless City, up to the full amount of the performance bond.
B. The Surety under Contractor’s payment bond shall be fully responsible for the performance of all of the Contractor’s remaining payment obligations for work, services, equipment or materials performed or provided in connection with the Work or any portion thereof, up to the full amount of the payment bond.
31. ACCOUNTING RECORDS OF CONTRACTOR
During performance of the Contract and for a period of three (3) years after completing the entire Work in the final Task Order, Contractor shall maintain all accounting and financial records related to the Contract and performance of the Work in accordance with generally accepted accounting practices, and shall keep and make such records available for inspection and audit by representatives of the City upon reasonable written notice.
32. USE TAX REQUIREMENTS
During the performance of this Agreement, Contractor, for itself, its assignees and successors in interest, agrees as follows:
A. Use Tax Direct Payment Permit: For all leases and purchases of materials, equipment, supplies, or other tangible personal property used to perform the Agreement and shipped from outside California, the Contractor and any subcontractors leasing or purchasing such materials, equipment, supplies or other tangible personal property shall obtain a Use Tax Direct Payment Permit from the California State Board of Equalization (“SBE”) in accordance with the applicable SBE criteria and requirements.
B. The above provisions shall apply in all instances unless prohibited by the funding source for the Agreement.
33. NON-DISCRIMINATION IN EMPLOYEE BENEFITS
This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.54, Non-Discrimination in Employee Benefits by City Contractors. The Contract Documents include a summary of the requirements of Sacramento City Code Chapter 3.54, entitled “Requirements of the Non-Discrimination in Employee Benefits Code.” By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter
3.54. If requested by City, Contractor agrees to promptly provide such documents and Form approved by City Attorney Sept 2021 15
information as may be required by City to verify Contractor’s compliance. Any violation by Contractor of Sacramento City Code Chapter 3.54 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies.
34. CONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENT APPLICATION
PROCESS
This Agreement may be subject to the requirements of Sacramento City Code Chapter 3.62, Procedures for Considering Criminal Conviction Information in the Employment Application Process. The Contract Documents include a summary of the requirements of Sacramento City Code Chapter 3.62, entitled “Ban-The-Box Requirements.” By signing this Agreement, Contractor acknowledges and represents that Contractor has read and understands these requirements and agrees to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62. If requested by City, Contractor agrees to promptly provide such documents and information as may be required by City to verify Contractor’s compliance. Any violation by Contractor of Sacramento City Code Chapter 3.62 constitutes a material breach of this Agreement, for which the City may terminate the Agreement and pursue all available legal and equitable remedies. Contractor agrees to require its subcontractors to fully comply with all applicable requirements of Sacramento City Code Chapter 3.62, and include these requirements in all subcontracts covered by Sacramento City Code Chapter 3.62.
35. LOCAL BUSINESS ENTERPRISE PARTICIPATION REQUIREMENTS If a Task Order amount is $250,000 or more, a 5% minimum Local Business Enterprise (LBE) Participation is required. Contractor shall comply with this LBE requirement. The Requirements for LBE Participation can be viewed at:
http://portal.cityofsacramento.org/Finance/Procurement/Standard-Agreements. [signature page follows]
Form approved by City Attorney Sept 2021 16
IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the Effective Date.
CONTRACTOR
Under penalty of perjury, I certify that the taxpayer identification number and all other information provided here are correct.
BY 1000005556 Expires 6/30/2
DIR Registration #
Irene Lucas, Partner 26-2010916
Title Federal Tax ID#
BY 283-3055-3
State Tax ID#
1007526 (License Renewed)
Title City of Sacramento Business Operation Tax
Certificate No.
Type of Business Entity: Partnership
CITY OF SACRAMENTO
A municipal corporation
BY
__________________________________________
Title
For Howard Chan, City Manager
Original Approved As To Form: Attest:
___________________________________
City Attorney City Clerk