Sacramento City Council
April 9, 2024

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00755 4/9/2024 Consent Item 8.

Contract: City of Sacramento Incinerator Demolition Removal (C15002010) File ID:2024-00755
Location: 821 N B Street, Council District 4, Represented by Mayor Steinberg Recommendation: Adopt a Resolution to: 1) use the Request for Qualification Q23014541001 for On-Call (Various) Trade Opportunities to satisfy the competitive selection requirements for this contract; 2) award a construction contract to CAL, Inc. in the amount not to exceed $744,765 for the City of Sacramento Incinerator Demolition Project; 3) establish the Incinerator Demolition Removal (C15002010) as a new Capital Improvement Project (CIP); 4) transfer $1,220,000 (General Fund, Fund 1001) from the expenditure budget of the Commercial Waste Compliance Project (I15220000) to the Sacramento Incinerator Demolition Project (C15002010); and 5) authorize the City Manager or the City Manager’s designee to execute the contract and transfer of funds specified above.

Contact: Jim Roehl, Program Manager, (916) 808-3478, [email protected]; James Christensen, Facilities Manager, (916) 808-5863, [email protected], Department of Public Works
Presenter: None.

Attachments:
1-Description/Analysis
2-Contract CAL Inc.
3-Resolution
Description/Analysis
Issue Detail: The City Incinerator at 821 North B Street was constructed in 1925 to handle the disposal of the city’s garbage. It remained operational until 1931, when budget constraints led to its closure. Since then, the buildings have largely stood vacant. Weather, water infiltration, and age have taken their toll on the structures, prompting a structural engineer and the City’s Housing and Dangerous Buildings Division to classify them as “Immediately Dangerous” necessitating prompt demolition. After thorough consideration of all available options, demolition emerges as the sole viable solution, mandated by the “Immediately Dangerous” designation. The proposed contract with CAL Inc. will encompass demolition, appropriate disposal of the smokestack, ramp, and building debris as well as backfilling of the basement structure.

File ID: 2024-00755 4/9/2024 Consent Item 8.

Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Chapter 3.60, which requires City Council approval for contracts over $250,000 or more.

On May 30, 2023, the City Council passed Motion No. 2023-0131 suspending competitive bidding in the best interest of the City to establish a qualified On-Call Services list for Public Facilities Improvements.

Economic Impacts: The recommended contract is expected to create 5.51 jobs (3.50 direct jobs and 2.01 job through indirect and induced activities) and create $727,279 in total economic output ($466,205 of direct output and another $261,074 of output in indirect and induced activities).

The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.

Environmental Considerations:

California Environmental Quality Act: The proposed action involves the demolition of the incinerator stack, ramp, and building. As outlined in the report identifying the structures as dangerous, they are deemed unstable and at risk of imminent collapse, posing potential widespread damage and threats to personal safety.

Given the emergency nature of the situation, the action is exempt from review under the California Environmental Quality Act (CEQA). (Pub. Resources Code, § (b)(4); CEQA Guidelines, § 15269(c); CalBeach Advocates v. City of Solano Beach (2002) 103 Cal.App.4th 529).

Sustainability: None.

Commission/Committee Action: Not applicable
Rationale for Recommendation: On January 11, 2023, the Department of Public Works issued Request for Qualification (RFQ) No. Q23014541001 for On Call (Various) Trade Opportunities. One of the categories that was requested as part of this process was for Demolition Services. On May 30, 2023, the City Council passed Motion No. 2023-0131 suspending competitive bidding in the best interest of the City to establish a qualified On- Call Contactor Services List. The establishment of the list of qualified On Call Contractors was created to provide timely services, when specialized work is required, or when operations of essential facilities are being interrupted. Due to the difficult nature and scope of work that needs to be completed at the City Incinerator worksite, CAL, Inc. was

File ID: 2024-00755 4/9/2024 Consent Item 8.
contacted to provide a proposal to complete the required work. CAL Inc. was able to provide a cost- effective solution to demolish the Incinerator, while allowing the adjacent tenants to continue operating.

Work is anticipated to begin April 2024 with completion of the project in June of 2024.

Financial Considerations: Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize cost and for all new contract to receive an additional level of scrutiny to ensure they are necessary for the operation of the operation of the City. This contract has been reviewed and approved by the City Manager’s Office to advance to Council for approval.

The estimated cost to complete the Incinerator Demolition Removal Project (C15002010) is $1,220,000. These funds are designated for administrative, implementation, and enforcement costs related to managing waste material, as well as for the City’s legacy landfill program, including closure and liability costs (per Sacramento City Code 13.24.260).

Upon approval of the transfer of $1,220,000 (General Fund, Fund 1001) there will be sufficient funding within the Demolition Removal Project (C15002010) to cover the total project cost, including the construction contract with CAL, Inc. for $744,765, as well as other project expenses such as environmental costs, internal City staff time and project management, and a contingency. Any project savings will be returned to Commercial Waste Compliance Project (I15220000) upon completion.

There is sufficient funding within the Commercial Waste Compliance Project (I15220000) to complete the transfer of $1,220,000 (General Fund, Fund 1001) to Incinerator Demolition Removal Project (C15002010).

Local Business Enterprise (LBE): CAL, Inc. is not an LBE. The minimum LBE participation requirement is waived as the City has suspended competitive bidding and utilized an alternate procurement method to select a vendor.

Form approved by City Attorney 1-11-17 1

AGREEMENT
(Construction Contract Over $25,000)
THIS AGREEMENT, dated for identification , 20 24, is made and entered into between the CITY OF SACRAMENTO, a municipal corporation (“City”), and CAL INC, 2040 Peabody Rd., Vacaville, CA 95687 (“Co ntractor”) in the amount of SEVEN

HUNDRED FORTY -FOUR THOUSAND SEVEN HUNDRED SIXTY -FIVE DOLLARS AND ZERO CENTS ($744,765.00).

The
City and Contractor hereby mutually agree as follows:

1. CON

TRACT 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:

Noti
ce 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)
Local Business Enterprise (LBE) Requirements
Requirements of the Non-Discrimination in Employee Benefits Code Ban-The-Box Requirements
Addenda, if any
This Agreement
Standard Specifications
Special Provisions
Plans and Technical Specifications
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
Unle
ss specifically noted otherwise, references to t he “Standard Specifications” shall mean and refer to the Standard Specifications for Public Construction of the City of Sacramento approved by the Sacramento City Council on November 10, 2020 (Resolution No. 2020-0354), 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. #33549B

Form approved by City Attorney 1-11-17 2

2. D

EFINITIONS
U
nless otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement.

3. A

GREEMENT CONTROLS
I
n 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. S

COPE OF CONTRACT
C
ontractor 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:

CI

TY OF SACRAMENTO INCINERATOR DEMOLITION
PN: I15220000
Including the Work called for in the following alternative bid items described in the Proposal Form:

NONE
C
ontractor agrees to perform such Work in the manner designated in and in strict conformity with the Contract Documents.

5. C

ONTRACT AMOUNT AND PAYMENTS
C
ity agrees to pay and Contractor agrees to accept, as complete payment for the above Work, 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 , a total sum that shall not exceed the total bid amount set forth in Contractor’s Proposal Form.

In addition, subject to deductions, withholdings and additions as specified in the Contract Documents, payment for individual items of the Work shall be computed as follows:

A. Fo
r items of the Work for which a lump sum price is specified in Contractor’s Proposal Form, Contractor shall be paid the lump sum price(s) specified in Contractor’s Proposal Form; and
B. Fo
r items of the Work for which a unit price is specified in Contractor’s Proposal Form, Contractor shall be paid the sum computed at such unit price , or computed at a different price if such different price is determined by City in accordance with the Standard Specifications, based on the actual amount of each such item performed and/or furnished and incorporated in the Work; provided that in no event shall the Form approved by City Attorney 1-11-17 3
total sum for a unit price item exceed the total bid amount set forth for such item in the Contractor’s Proposal Form, unless authorized by Change Order.

6. PR

OGRESS PAYMENTS
S
ubject 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 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 aut horized or required under the Contract or any applicable Laws or Regulations.

B. N
o 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. C
ontractor shall not be paid for any defective or improper Work.

D. T
he 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 of the Work by City. Acceptance by Contractor of the final payment shall constitute a waiver of all claims against the City arising under the Contract Documents, except for disputed claims in s tated 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. T
he 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 by the Contractor and the Engineer 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 t his date may be subject to payment of interest as provided in Public Contract Code Section 20104.50.

Form approved by City Attorney 1-11-17 4
F. This Contract is subject to compliance monitoring and enforcement by the California Department of Industrial Relations, as specified in California Labor Code section 1771.4.

7. R

ETENTION OF SUMS CHARGED AGAINST CONTRACTOR
W
hen, 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 rec over the balance from Contractor or its Sureties.

8. C

OMMENCEMENT AND PROSECUTION OF WORK
C
ontractor shall commence the Work not later than fifteen (15) working days after the date of the written Notice to Proceed from City to Contractor and shall diligently prosecute the Work to final completion. The phase “commence the Work” means to engage in a continuous program on-site including, but not limited to, site clearance, grading, dredging, land filling and the fabrications, erection, or installation of the Work. The Notice to Proceed shall be issued within fifteen (15) calendar days following execution of the Agreement by the City and the filing by Contractor of the required Bonds and proof of insurance , provided that the Engineer may delay issuance of the Notice to Proceed if the Engineer determines in the Engineer’s sole discretion that conditions on the site of the Work are unsuitable for commencement of the Work . After the Notice to Proceed is issued, the continuous prosecution of Work by Contractor shall be subject only to Excusable Delays as defined in this Agreement.

9. T

IME OF COMPLETION
T
he entire Work shall be brought to completion in the manner provided for in the Contract Documents on or before SIXTY (60) CALENDAR days or earlier from the date of the Notice to Proceed (hereinafter called the “Completion Date”) unless extensions of time are granted in accordance with the Contract Documents.

Failu
re to complete the entire 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. PA

YMENTS DO NOT IMPLY ACCEPTANCE OF WORK
T
he 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 Form approved by City Attorney 1-11-17 5
unsatisfactory character of such work or material was apparent or detected at the time such payment was made.

11. A

CCEPTANCE NOT RELEASE
C
ontractor shall correct immediately any defective or imperfect work or materials that may be discovered before final acceptance of the entire 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.

Failu
re 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 , if such defect or imperfection becomes evident at any time prior to final acceptance of the entire Work, 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. C

ITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART T
he 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 the final acceptance of the Work as a whole, without in any way relieving Contr actor of any obligations under this Contract.

13. N

O WAIVER OF REMEDIES
N
either 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 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. W

ARRANTY
E
xcept 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 final acceptance of the entire Work by the City.

Form approved by City Attorney 1-11-17 6
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.

I
n 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 th at 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.

I
n addition to the above, the Contractor shall make a written assignment of all manufacturer’s and other product warranties to the City, prior to completion and final acceptance of the Work by City.

T
he 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. T
he actual fact of the occurrence of damages and the actual amount of the damages that City would suffer if the entire Work, and/or any specified portion ther eof, were not completed within the time(s) specified herein 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 and/or any specified portion thereof , and shall be presumed to be the amount of damages sustained by the failure of Contractor to complete the entire Work and/or any specified portion thereof within the time(s) specified herein.

Form approved by City Attorney 1-11-17 7
B. C
ontractor shall pay liquidated damages to City for failure to complete the entire Work by the Completion Date (as extended in accordance with the Contract Documents, if applicable) in the amount of $1000.00 A DAY for each calendar day after the Completion Date (as extended in accordance with the Contract Documents, if applicable), continuing to the time at which the entire 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.

T
he parties agree, and by execution of this Agreement, Contractor acknowledges that it understands and agrees, that the foregoing provisions provide for the imposition of liquidated damages from the Completion Date (as extended in accordance with the Contract Documents, if applicable) until the date of completion of the entire Work as determined by the Engineer in accordance with Section 8 -4 of the Standard Specifications, whether or not the Work or any portion thereof is claimed or determined to be substantially complete prior to such date of completion.

C. I
n 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. C
ontractor 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 Form approved by City Attorney 1-11-17 8
(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 defe cts 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. T
he 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
U
ntil 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
E
xcept 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
Dur
ing the entire term of the Contract, Contractor shall maintain the insurance coverage described in this Section 19.

Fu
ll 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.

I
t 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.

Form approved by City Attorney 1-11-17 9
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 prov
iding 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, non- owned, and/or hired autos as appropriate to the operations of the Contractor.

No a
utomobile liability insurance shall be required if Contractor completes the following certification:
“I c
ertify that a motor vehicle will not be used in the performance of any work or services under this agreement.” ________ (Contractor initials)
(3) Excess Insurance: The minimum limits of insurance required above may be satisfied by a combination of primary and umbrella or excess insurance coverage; provided that any umbrella or excess insurance shall contain, or be endorsed to contain, a provision that it shall apply on a primary basis for the benefit of the CITY, and any insurance or self-insurance maintained by CITY, its officials, employees, or volunteers shall be in excess of such umbrella or excess coverage and shall not contribute with it. (4) 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.

No W
orkers’ Compensation insurance shall be required if Contractor completes the following certification:

Form approved by City Attorney 1-11-17 10
“I c
ertify that my business has no employees, and that I do not employ anyone. I am exempt from the legal requirements to provide Workers' Compensation insurance.” _________
(Contractor initials)
B. Additional Insured Coverage
(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) C
ontractor’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) An
y failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, employees, or volunteers. (3) C
overage 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) C
ity will be provided with thirty (30) days written notice of cancellation or material change in the policy language or terms.

D. Acceptability of Insurance
Insur
ance shall be placed with insurers with a Bests’ rating of not less than A:VI.

Self-insured 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.

Form approved by City Attorney 1-11-17 11
E. Verification of Coverage
(1
) Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. 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:

C
ity of Sacramento
c/o EXIGIS LLC
P.O. Box 947
Murrieta, CA 92564
I
nsurance 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
C
ontractor 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
I
f, 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 C ity 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 therefor 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.

Form approved by City Attorney 1-11-17 12
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.

T
he 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.
2 1. EXCUSABLE DELAYS
F
or 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; sitdowns; 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 admin istrator 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 supplie rs; 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 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 (not in excess of the period of such delay as dete rmined 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.
2 2. CONTRACTOR TO SERVE NOTICE OF DELAYS
W
henever 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 Form approved by City Attorney 1-11-17 13
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.

A
fter 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. E

XTENSION OF TIME
I
f the Contractor complies with Section 22, above, and the Engineer finds a delay claimed by the Contractor to be an Excusable Delay, 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 approval by City of a change order granting such time extension.

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 by a duly authorized change order.

24. N

O PAYMENT FOR DELAYS
N
o 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 is not within the contemplation of the parties, provided that the Contractor timely submits all such written notice(s) and fully complies with s uch other procedures as may be specified in the Contract Documents or any Laws or Regulations for Contractor to claim damages for such delay.

25. CHA

NGES IN THE WORK
C
hanges 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 Form approved by City Attorney 1-11-17 14
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. TE

RMINATION AFTER COMPLETION DATE
I
n addition to any other rights City may have, if any services or work required under the Contract (including but not limited to punch list items) are not completed as of the Completion Date (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 termina tion 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.

I
n 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, including but not limited to incomplete punch list items. 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
U
pon 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 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):

A. F
or Work executed 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 1-11-17 15
B. For reasonable claims, costs, losses, and damages incurred in settlement of terminated contracts with subcontractors, suppliers, and others; and C. Fo
r reasonable expenses directly attributable to termination.

C
ontractor 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
I
f 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 Contracto r 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 Sureties written notification to immediately correct the situation or the Contract shall be terminated.

I
n 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.

I
n 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, both 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 Suret ies shall be jointly and severally liable for all obligations imposed on Contractor hereunder.

Form approved by City Attorney 1-11-17 16
N
o 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.
29 . CONTRACTOR BANKRUPT
I
f 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. S
URETIES’ OBLIGATIONS UPON TERMINATION
I
f the City terminates the Contract pursuant to Section 28 or Section 29 above:

A. T he
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. T
he 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. A

CCOUNTING RECORDS OF CONTRACTOR
Dur
ing performance of the Contract and for a period of three (3) years after completing the entire Work, 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.

Form approved by City Attorney 1-11-17 17

32. USE TAX REQUIREMENTS
D
uring 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. Sellers Permit: For any construction contract and any construction subcontract in the amount of $5,000,000 or more, Contractor and the subcontractor(s) shall obtain sellers permits from the SBE and shall register the jobsite as the place of business for the purpose of allocating local sales and use tax to the City.

Contractor and its subcontractors shall remit the self -accrued use tax to the SBE, and shall provide a copy of each remittance to the City.

C. T
he above provisions shall apply in all instances unless prohi bited by the funding source for the Agreement.

33. N

ON-DISCRIMINATION IN EMPLOYEE BENEFITS
T
his 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 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. C

ONSIDERING CRIMINAL CONVICTION INFORMATION IN THE EMPLOYMENT

APPLICATION PROCESS
T
his 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 Form approved by City Attorney 1-11-17 18
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.

Form approved by City Attorney 1-11-17 19
IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date set forth opposite their names.

CONTRACTOR
Under penalty of perjury, I certify that the
taxpayer identification number and all other
information provided here are correct.

DATE BY_________________________________
____________________________________
Print Name
____________________________________
Title

BY_____________ ____________________
___________________________________
Print Name
____________________________________
Title
DIR Registration #
____________________________________
Federal ID#
____________________________________
State ID#
____________________________________
City of Sacramento Business Operation Tax
Certificate No. (City will not award contract until
Certificate Number is obtained)
Type o
f Business Entity (check one):
_____ Individual/Sole Proprietor
_____ Partnership
_____ Corporation
_____ Limited Liability Company
_____Other (please specify:________________)
CITY O

F SACRAMENTO
a municipal corporation
DATE BY _________________________________
For: Howard Chan, City Manager
Original Approved As To Form: Attest:

City Attorney City Clerk
3/22/24
David Esparza
President
1000003209
77-0002188
30992507
128166
X
N/A

SCOPE OF WORK
As required by an Immediately Dangerous Building Declaration by the City of Sacramento’s Dangerous Buildings Division, the City is demolishing the existing City Incinerator located at 821 N.

B Street. The Incinerator’s smokestack, ramp, and building will all be demolished. All hazardous materials will be removed or stabilized prior to demolition. All demoed material to be hauled off site to appropriate facilities.

Contractor to provide labor, equipment and materials to remove and dispose of the items as identified below.
1) Work includes removal of items identified in the scope of work. 2) Soil disturbance on site is to be minimal. Any disturbed soil is to remain on site. 3) Work assumes only 1 mobilization. Bond costs may increase due to per mobilization cost. 4) Work based on M-F normal business hours.
5) Work includes an Air Permit/notification from/to the Sacramento Metro Air Quality Management District (SMAQMD) and a demolition permit from the City’s Community Development Department. Contractor to procure and pay for all required permits. 6) Per the March 3, 2024 Hazardous Materials Survey, work to include the removal of asbestos containing materials and stabilization of lead based paint consisting of removing loose and peeling paint before demolition
7) Contractor to receive approval from the appropriate regulatory agencies (CDPH, CAL OSHA, SMAQMD) to cut and remove the stack including using wet methods, containment, trained lead personnel and other methods as required.
8) Lead-Paint Stabilization/Removal Work is for remediation purposes where the loose and flaky paint is removed from the remaining stabilized paint. Contractor will do everything possible to avoid paint layers from coming off the surfaces. LBP encapsulation will be applied where needed to stabilize the paint edges.
9) Prior to disposal, Contractor will perform waste characterization of stack material whic h
ha
s been identified as having lead in the bricks. Proposal assumes general debris of all materials once asbestos and lead items have been removed or stabilized. 10) Contractor will transport and dispose/recycle materials per regulations. All materials in bins o
r trucks will become the property of Contractor. Contractor is responsible for the disposal and/or recycling of materials as well as all costs and values associated with these materials.
11) Manifest(s) and signatures will be required by the City for any hazardous and non-hazardous ma
terials. Contractor waste administrator to assist.
12) Backfill and foundation work to include cutting off the basement concrete foundation 30” below the surface. A minimum of 3 six inch holes, evenly spaced to be cored into the concrete slab prior to the placement of concrete rubble and PG&E sand to allow for d
rainage. The remaining depth of the basement to be filled to 18” below the surface with c
lean fill soil and/or gravel. Total material placed in the basement not to exceed 227 cubic yards.
13) Concrete slabs to remain. Anchor bolts to be removed at slab level. If slabs are removed, rough grade only. Foundation slab work is based on industry standard thicknesses no greater than 6 inches.
14) Concrete Footings to be removed at 2 ½ feet from surface. 15) Contractor to supply required water, water meter (if needed) and electricity. 16) Site security to be provided by Contractor on weekend nights only. 17) Street sweeping included, up to 3 days a week.
18) Temporary fencing and replacement of existing fencing by the City. 19) Onsite parking will be available for workersworkers’ trucks and demolition equipment needed for the project.

I
temized Cost Break Down
Site work $ 66,882
Stack Demolition $ 121,436
Ramp Demolition $ 231,275
Bottom Half of the Building Demolition $ 38,355
Top Half of Building Demolition $ 140,876
Permits $ 9,869
Bond $ 23,114
Per Mobilization cost $ 6,452
Security Weekends Nights only (Per Month) $ 5,545
Asbestos Remediation per survey $ 13,698
Lead Paint Stabilization $ 16,951
Basement Fill PG&E Sand Fill Dirt (277 cyds) $ 70,314 T otal Estimated Project Cost $ 744,765
Form approved by CAO 5-9-12
CITY OF SACRAMENTO Bond No.:____________
PERFORMANCE BOND Premium: ____________

W
HEREAS, the City of Sacramento, State of California, hereinafter called City, has conditionally awarded to CAL INC, 2040 Peabody Rd., Vacaville, CA 95687:
as
principal, hereinafter called Contractor, a contract for construction of:

CITY OF SACRAMENTO INCINERATOR DEMOLITION
PN: I15220000
which contract is by reference incorporated herein and made a part hereof as if the Surety named below were a party to the contract, and is hereinafter referred to as the Contract; and W
HEREAS, under the terms of the Contract, Contractor is required to furnish a bond for the faithful performance of the Contract.

N
OW, THEREFORE, we the Contractor and (here insert full name and address of Surety ):
,
a corporation duly authorized and admitted to transact business and issue surety bonds in the State of California, hereinafter called Surety, are held and firmly bound unto the City, as obligee, in the sum of:

SEVEN HUNDRED FORTY- FOUR THOUSAND SEVEN HUNDRED SIXTY- FIVE DOLLARS AND ZERO CENTS ($744,765.00) , for the payment of which sum well and truly to be made, we the Contractor and Surety bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally. The condition of this obligation is such that, if the Contractor, Contractor's heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and fully perform all covenants, conditions and agreements required to be kept and performed by Contractor in the Contract and any changes, additions or alterations made thereto, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meanings, and shall indemnify and save harmless the City, its officers, employees and agents, as therein provided, then the Surety’s obligations under the Contract and this bond shall be null and void; otherwise they shall be and remain in full force and effect. This obligation shall remain in full force and effect through the end of the Contract warranty period, which will expire one year after the completion of work date specified in the Notice of Completion filed for the above-named project.

A
s part of the obligations secured hereby and in addition to the sum specified above, there shall be included all costs, expenses and fees, including attorney's fees, reasonably incurred by City in successfully enforcing such obligations, all to be taxed as costs and included in any judgment rendered.

T
he Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or to the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.

IN
WITNESS WHEREOF , this instrument has been duly executed by authorized representatives of the Contractor and Surety. SIGNED AND SEALED on __________________, 20_____. ____
________________________________ _________________________________ (Contractor) (Seal) (Surety) (Seal)
By _________________________________ By ______________________________ Title ________________________________ Title _____________________________ OR
IGINAL APPROVED AS TO FORM: Agent name & Address ________________ ___________________________________
____________________________________ Agent Phone # ______________________ Surety Phone # ______________________
City Attorney California License # ___________________
Effective 7-1-12
CCITYOF SACRAMENTO Bond No.:____________
PAYMENT BOND Premium: ____________
P
age 1 of 1
W
HEREAS, the City of Sacramento, in the State of California, hereinafter called City, has conditionally awarded to: CAL INC, 2040 Peabody Rd., Vacaville, CA 95687 hereinafter called Contractor, a contract for construction of:

CITY OF SACRAMENTO INCINERATOR DEMOLITION
PN: I15220000
Which contract is by reference incorporated herein and made a part hereof, and is hereinafter referred to as the Contract; and
W
HEREAS, under the terms of the Contract and pursuant to Chapter 5 of Title 3 of Part 6 of Division 4 of the California Civil Code (commencing with Civil Code Section 9550), Contractor is required to furnish a good and sufficient payment bond to secure payment of the claims to which reference is made in Civil Code Section 9554.

N
OW, THEREFORE, we the Contractor and (here insert full name and address of Surety ):
_____________________________________________________________________________________, a corporation duly authorized and admitted to transact business and issue surety bonds in the State of California, hereinafter called Surety, are held and firmly bound unto the City, and unto all persons or entities entitled to assert a claim against a payment bond under any of the aforesaid Civil Code provisions in the sum of SEVEN HUNDRED FORTY- FOUR THOUSAND SEVEN HUNDRED SIXTY- FIVE DOLLARS AND ZERO CENTS ($744,765.00) , on the condition that if Contractor shall fail to pay for any materials or equipment furnished or used in performance of the Contract, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board or the Employment Development Department from the wages of employees of the Contractor and all subcontractors with respect to such work or labor, then the Surety shall pay the same in an amount not exceeding the sum specified above. If suit is brought upon this bond, Surety shall pay, in addition to the above sum, all costs, expenses and fees, including attorney's fees, reasonably incurred by any party in successfully enforcing the obligation secured hereby, all to be taxed as costs and included in any judgment rendered. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect, and shall bind Contractor, Surety, their heirs, executors, administrators, successors and assigns, jointly and severally.

I
t is hereby stipulated and agreed that this bond shall inure to the benefit of all persons, companies, corporations, political subdivisions , State agencies and other entities entitled to assert a claim against a payment bond under any of the aforesaid Civil Code provisions, so as to give a right of action to them or their assigns in any suit brought upon this bond. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or to the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.

IN
WITNESS WHEREOF , this instrument has been duly executed by authorized representatives of the Contractor and Surety. SIGNED AND SEALED on , 20 _____. ____
________________________________ _________________________________ (Contractor) (Seal) (Surety) (Seal)
By _________________________________ By ______________________________ Title ________________________________ Title _____________________________ OR
IGINAL APPROVED AS TO FORM: Agent name & Address ________________ ___________________________________
____________________________________ Agent Phone # ______________________ Surety Phone # ______________________
City Attorney California License # ___________________
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023

REQUIREMENTS FOR THE LOCAL BUSINESS ENTERPRISE PROGRAM
(LBE Program)

1. INTRODUCTION

The City of Sacramento has a Local Business Enterprise (LBE) Program to provide enhanced opportunities for local businesses to participate in the City's procurement and contracting activities. The Program began with an LBE Preference for bid and proposal evaluation. The Program was then expanded to require minimum LBE Participation levels in specific procurement opportunities.

2. APPLICATION

As summarized in the table below, there are two components to the LBE Program:

a. LBE Preference: For certain contracts, a 5% LBE Preference is applied during the bid evaluation process.
b. LBE Participation Requirement: For certain contracts, a minimum 5% LBE participation level is required for a bidder to be considered responsive.

Contracts Under $250,000 Contracts $250,000 or more

Goods
Non-
Professional
Services

Professional
Services

Public
Projects

Goods
Non-
Professional
Services

Professional
Services

Public
Projects
Apply 5% LBE
Preference* YES YES YES YES NO NO YES NO
Apply 5%
Minimum LBE
Participation
Requirement

NO

NO

NO

NO

NO

YES

YES

YES
* LBE Preference only applies if the proposed prime contractor qualifies as an LBE.

Local Business Enterprise: A Local Business Enterprise (“LBE”) means a business enterprise, including but not limited to, a sole proprietorship, partnership, limited liability company, corporation, or other business entity that has a “legitimate business presence” within City limits or the unincorporated area of Sacramento County.

A “legitimate business presence” within City limits or the unincorporated area of Sacramento County means:

a. An established business entity operating within the selected areas for at least 12 consecutive months prior to submission of bid; and
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
b. Legally operating a location in the City of Sacramento or unincorporated area1 of Sacramento County that is either:
(1) a principal business office or workspace; or
(2) a regional, branch, or satellite office with at least one full-time employee.

To qualify as an LBE, firms must meet these two requirements prior to the deadline for submission of bids or proposals. Upon the request of the City, firms shall provide proof of legally operating a location within City limits or the unincorporated County with the following documents:
- Tax returns for the business;
- Utility bill in the name of the business;
- Business license; and/or
- Secretary of State filings.

Exceptions from LBE Preference and Participation Requirements The LBE Program does not apply to procurement processes for contracts funded with federal funds, goods or services purchased through cooperative purchase agreements, or contracts entered into in response to a declared emergency.

3. LBE PREFERENCE

For contracts under $250,000, firms that qualify as an LBE will receive a 5% preference on all City procurement opportunities. For professional service contracts only, this preference also applies to procurement opportunities of $250,000 or more. The proposed prime contractor must qualify as an LBE to receive LBE preference points. Utilizing an LBE subcontractor is not a basis for receiving LBE preference points.

For contracts to be awarded in response to a solicitation for bids, a bid or quotation submitted by a firm that qualifies as an LBE will receive a 5% bid evaluation preference for the purpose of determining the lowest responsible bidder. This means that, for bid evaluation purposes, the total price bid by an LBE shall be reduced by 5%. However, this reduction only applies for bid evaluation purposes, and the resulting contract or purchase order will reflect the actual amount bid by the LBE.

For contracts awarded in response to a solicitation for proposals or qualifications, a firm that qualifies as an LBE shall receive additional points during the scoring process, so the final score

1 “Unincorporated area” generally refers to the part of a county that is not part of any city. The unincorporated area of Sacramento County does not include the cities of Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova , Rancho Cordova, and Sacramento.
(see https://www.saccounty.gov/Government/Pages/CitieswithintheCounty.aspx ).

CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
awarded to the LBE is increased by 5% of the total possible evaluation points.

The City Manager does not have the authority to waive the application of the LBE Preference.

Only the City Council can waive the application of the LBE Preference. No waiver is required for procurements that are otherwise excluded from the LBE Program (as listed above), including federally funded purchases.

4. LBE PARTICIPATION REQUIREMENT
For non-professional service, professional service, and public project contracts of $250,000 or more, a minimum 5% LBE participation level is required. To receive credit for the 5% minimum participation requirement, bidders must either (a) be an LBE, or (b) subcontract with a qualified LBE.

Under City Code section 3.60.270, when the City establishes a minimum participation level for LBE's on a contract, no contractor shall be considered responsive unless its bid or proposal meets the minimum LBE participation level required.

The City Manager (or designee) has the authority to waive or reduce the LBE Participation requirements on some procurement opportunities prior to acceptance of bids or proposals.

PARTICIPATION LEVEL
LBE Participation: The percentage of LBE participation is determined based on the dollar value of the work to be performed. LBE credit may be obtained by utilizing LBE qualified subcontractors or suppliers, as outlined below.

Participation Credit: To receive credit for LBE participation:

1. An LBE contractor or subcontractor must: (1) be responsible for the execution of a distinct element of the work; (2) possess any license or certification required for the work; and (3) actually perform, manage, or supervise the work without subcontracting or otherwise shifting any portion of the work to another subcontractor.

2. An LBE supplier must: (1) furnish materials or equipment that the supplier sells as a recurring, although not necessarily primary, part of its business; and (2) the materials or equipment must be necessary for performance of the work.

Suppliers: Credit for an LBE supplier of materials or equipment is counted as 100% of the amount paid to the supplier for the materials or equipment. To receive this credit, LBE Suppliers must be listed on a Subcontractor and LBE Participation Verification Form and submitted with a bid or proposal.

CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023

Subcontractors (including Truckers): To receive credit for an LBE subcontractor, the subcontractor must be listed on a Subcontractor and LBE Participation Verification Form and submitted with a bid or proposal.

Truckers: Credit for an LBE trucker is counted as 100% of the amount paid to the trucker for trucking/hauling services, not including any amount paid to the Trucker for the cost of any materials or equipment being transported by the Trucker.

CONTRACTOR AND SUBCONTRACTOR REQUIREMENTS2

LBE Records: The Contractor shall maintain records of all subcontracts with verified LBE subcontractors and records of materials purchased from verified LBE suppliers for one year after receiving final payment from the City. Such records shall show the name and business address of each LBE subcontractor or supplier and the total dollar amount actually paid to each LBE subcontractor or supplier.

No later than 30 days after completion of the work performed under the contract, a summary of these records shall be prepared, certified correct by the Contractor's authorized representative and furnished to the City. The Contractor shall provide such other information, records, reports, certifications or other documents as may be required by the City, to determine compliance with any provision of the LBE Program or these specifications.

Performance of LBE Subcontractors and Suppliers: The LBE subcontractors and suppliers listed by the Contractor shall perform the work and supply the materials or equipment for which they are listed on the Subcontractor and LBE Participation Verification Form, unless the Contractor has received prior written authorization from the City to perform the work with other forces or to obtain the materials or equipment from other sources. Reasons for requesting such authorization would include:

1. The listed LBE subcontractor or supplier fails to execute a written contract based upon the general terms, conditions, plans, and specifications for the project.

2. The listed LBE subcontractor or supplier becomes bankrupt or insolvent.

3. The listed LBE subcontractor or supplier fails to meet the bond requirements of the Contractor.

4. The work performed or the materials or equipment provided by the listed LBE subcontractor or supplier are unsatisfactory or are not in accordance with the plans and specifications.

5. The listed LBE subcontractor or supplier fails to perform its contractual obligations.

2 These requirements only apply to the LBE Participation component of the LBE Program CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023

6. It would be in the best interest of the City.

Subcontractor Substitution: No substitution of an LBE subcontractor shall be made at any time without compliance with the Subletting and Subcontracting Fair Practices Act. If an LBE subcontractor is unable to perform successfully and is to be replaced, the Contractor shall make reasonable efforts to replace the original LBE subcontractor with another verified LBE subcontractor. The new LBE subcontractor must be verified at the time of substitution.

CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
Reporting and Utilization Requirements and Sanctions: Failure to provide specific information, records, reports, certifications or any other documents required for compliance with these specifications, or failure to utilize one or more LBE's in substantial compliance with the LBE utilization indicated in the Contractor's bid or proposal (unless otherwise authorized by the City as provided herein, or when such failure results from changes to the work approved by the City), shall be considered a breach of the contract.

A
deduction may be made from the contract amount and the deduction shall not be more than 10% of the value of the work or materials or equipment that the subject LBE(s) were listed to perform or provide in the Contractor's bid or proposal. Deduction shall be made from any payment due the Contractor. This is in addition to any deduction that may be made under any other provision of the Contract, the Sacramento City Code, or State law.

Hearing and Review of Division Manager Decision: Prior to making a deduction pursuant to the Reporting and Utilization Section above, the City shall provide written notice of the proposed deduction to the Contractor. The Contractor may, no later than 5 working days after receiving such notice, provide a written request to the City for a hearing to contest the proposed deduction. Upon receipt of a timely written request from the Contractor, the City shall schedule a hearing before the Division Manager (as defined in the City's Standard Specifications for Public Construction), and written notice of the date, time, and location of the hearing shall be provided to the Contractor not less than 5 working days prior to the date of the hearing.

T
he hearing shall be conducted in the manner specified in Section 4-8 of the Standard Specifications, and the Division Manager shall prepare and forward to the Contractor a written decision as soon as practicable after the hearing. The Division Manager's decision shall be subject to review in accordance with the provisions of Section 4-9 of the Standard Specifications. Failure to request such review in compliance with the requirements set forth in Section 4-9 shall constitute acceptance of the Division Manager's decision by the Contractor.

Written Notices: The written notices and request described above shall be provided by registered or certified mail (return receipt requested), by personal delivery, or by any other method that provides reliable evidence of the date of receipt. Written notice provided by personal delivery shall be deemed received on the date of delivery.

LBE s
tatus is applicable to the following:
• Any Sacramento addresses which encompasses both the City & unincorporated Sacramento County – including neighborhoods like Rosemont, Antelope, Foothill Farms & Walerga.
• North Highlands
• Carmichael
• Fair Oaks
• Orangevale
• If you should have a question regarding if you or one of your subcontractors or suppliers qualifies as an LBE please type the address locations using the link that is provided on the following page.

The map below can be found at: http://www.311.saccounty.net/Pages/Sacramento-County-Maps.aspx For an interactive map showing exact address locations within the City of Sacramento or unincorporated County of Sacramento: http://generalmap.gis.saccounty.net/JSViewer/county_portal.html

12-22-16 Page 1

REQUIREMENTS OF THE NON-DISCRIMINATION IN EMPLOYEE BENEFITS CODE

INTRODUCTION

The Sacramento Non -Discrimination In Employee Benefits Code (the “Ordinance”), codified as Sacramento City Code Chapter 3.54, prohibits City contractors from discriminating in the provision of employee benefits between employees with spouses and employees with domestic partners, and between the spouses and domestic partners of employees.

APPLICATION

The provisions of the Ordinance apply to any contract or agreement (as defined below), between a Contractor and the City of Sacramento, in an amount exceeding $100,000.00. The Ordinance applies to that portion of a contractor’s operations that occur: (i) within the City of Sacramento; (ii) on real property outside the City of Sacramento if the property is owned by the City or if the City has a right to occupy the property; or (iii) at any location where a significant amount of work related to a City contract is being performed.

The Ordinance does not apply: to subcontractors or subcontracts of any Contractor or contractors; to transactions entered into pursuant to cooperative purchasing agreements approved by the Sacramento City Council; to legal contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the City; where the requirements of the ordinance will violate or are inconsistent with the terms or conditions of a grant, subvention or agreement with a public agency or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or agreement; to permits for excavation or street construction; or to agreements for the use of City right -of-way where a contracting utility has the power of eminent domain.

DEFINITIONS

As set forth in the Ordinance, the following definitions apply:

“Contract” means an agreement for public works or improvements to be performed, or for goods or services to be purchased or grants to be provided, at the expense of the City or to be paid out of moneys deposited in the treasury or out of the trust money under the control or collected by the City. “Contract” also means a written agreement for the exclusive use (“exclusive use” means the right to use or occupy real property to the exclusion of others, other than the right reserved by the fee owner) or occupancy of real property for a term exceeding 29 days in any calendar year, whether by singular or cumulative instrument, (i) for the operation or use by others of real property owned or controlled by the City for the operation of a business, social, or other establishment or organization, including leases, concessions, franchises and easements, or (ii) for the City’s use or occupancy of real property owned by others, including leases, concessions, franchises and easements.

“Contract” shall not include: a revocable at -will use or encroachment permit for the use of or encroachment on City property regardless of the ultimate duration of such permit; excavation, street construction or street use permits; agreements for the use of City right -of-way where a contracting utility has the power of eminent domain; or agreements governing the use of City property that 12-22-16 Page 2
constitute a public forum for activities that are primarily for the purpose of espousing or advocating causes or ideas and that are generally protected by the First Amendment to the United States Constitution or that are primarily recreational in nature.

“Contractor” means any person or persons, firm, partnership, corporation, company, or combination thereof, that enters into a Contract with the City. “Contractor” does not include a public entity.

“Domestic Partner” means any person who has a currently registered domestic partnership with a governmental entity pursuant to state or local law authorizing the registration.

“Employee Benefits” means bereavement leave; disability, life, and other types of insurance; family medical leave; health benefits; membership or membership discounts; moving expenses; pension and retirement benefits; vacation; travel benefits; and any other benefit given to employees. “Employee benefits” shall not include benefits to the extent that the application of the requirements of this chapter to such benefits may be preempted by federal or state.

CONTRACTOR’S OBLIGATION TO PROVIDE THE CITY WITH DOCUMENTATION AND INFORMATION Contractor shall provide the City with documentation and information verifying its compliance with the requirements of the Ordinance within ten (10) days of receipt of a request from the City. Contractors shall keep accurate payroll records, showing, for each City Contract, the employee’s name, address, Social Security number, work classification, straight time pay rate, overtime pay rate, overtime hours worked, status and exemptions, and benefits for each day and pay period that the employee works on the City Contract. Each request for payroll records shall be accompanied by an affidavit to be completed and returned by the Contractor, as stated, attesting that the information contained in the payroll records is true and correct, and that the Contractor has complied with the requirements of the Ordinance. A violation of the Ordinance or noncompliance with the requirements of the Ordinance shall constitute a breach of contract.

EMPLOYER NOTICE REQUIREMENTS

(a) The Contractor shall give each existing employee working directing on a City C ontract, and (at the time of hire), each new employee, a copy of the notification provided as Attachment “A.”

(b) Contractor shall post, in a place visible to all employees, a copy of the notice provided as Attachment “B.”

Attachment A

YOUR RIGHTS UNDER THE CITY OF SACRAMENTO’S NON-DISCRIMINATION IN EMPLOYEE BENEFITS CODE

On ……………….. (date), your employer (the “Employer”) entered into a contract with the City of Sacramento (the “City”) for ………………………….. (contract details), and as a condition of that contract, agreed to abide by the requirements of the City’s Non -Discrimination In Employee Benefits Code (Sacramento City Code Section 3.54).

The Ordinance does not require the Employer to provide employee benefits. The Ordinance does require that if certain employee benefits are provided by the Employer, that those benefits be provided without discrimination between employees with spouses and employees with domestic partners, and without discrimination between the spouse or domestic partner of employees.

The Ordinance covers any employee working on the specific contract referenced above, but only for the period of time while those employees are actually working on this specific contract.

The included employee benefits are:

- Bereavement leave - Moving expenses
- Disability, life and other types of insurance - Pension and retirement - Family medical leave benefits
- Health benefits - Vacation
- Membership or membership discounts - Travel benefits - Any other benefits given to employees

(Employee Benefits does not include benefits that may be preempted by federal or state law.)

If you feel you have been discriminated or retaliated against by your employer in the terms and conditions of your application for employment, or in your employment, or in the application of these employee benefits, because of your status as an applicant or as an employee protected by the Ordinance, or because you reported a violation of the Ordinance, and after having exhausted all remedies with your employer,

You May . . .

 Submit a written complaint to the City of Sacramento, Contract Services Unit, containing the details of the alleged violation. The address is:

City of Sacramento
Procurement Services Division
915 I Street, Second Floor
Sacramento, CA 95814

 Bring an action in the appropriate division of the Superior Court of the State of California against the Employer and obtain the following remedies:

- Reinstatement, injunctive relief, compensatory damages and punitive damages

- Reasonable attorney’s fees and costs

Attachment B

YOUR RIGHTS UNDER THE CITY OF SACRAMENTO’S NON-DISCRIMINATION IN EMPLOYEE BENEFITS CODE

If your employer provides employee benefits, they must be provided to those employees working on a City of Sacramento contract without discriminating between employees with spouses and employees with domestic partners.

The included employee benefits are:

- Bereavement leave - Moving expenses
- Disability, life and other types of insurance - Pension and retirement benefits - Family medical leave - Vacation
- Health benefits - Travel benefits
- Membership or membership discounts - Any other benefits given to Employees

If you feel you have been discriminated against by your employer . . .

You May . . .

 Submit a written complaint to the City of Sacramento, Contract Services Unit, containing the details of the alleged violation. The address is:

City of Sacramento
Procurement Services Division
915 I Street, Second Floor
Sacramento, CA 95814

 Bring an action in the appropriate division of the Superior Court of the State of California against the employer and obtain reinstatement, injunctive relief, compensatory damages, punitive damages and reasonable attorney’s fees and costs.

Discrimination and Retaliation Prohibited.

If you feel you have been discriminated or retaliated against by your employer in the terms and conditions of your application for employment, or in your employment, because of your status as an applicant or as an employee protected by the Ordinance, or because you reported a violation of this Ordinance . . .

You May Also . . .

Submit a written complaint to the City of Sacramento, Contract Services Unit, at the same address, containing the details of the alleged violation.

CITY OF SACRAMENTO WORKERS COMPENSATION CERTIFICATION

WORKER'S COMPENSATION CERTIFICATION

In accordance with Article 5 (commencing at Section 1860), Chapter 1, Part 7, Division 2 of the Labor Code, the below certificate must be signed and filed with the awarding body prior to performing any work under this contract. Labor Code Section 3700, inter alia, states the following:

"Every employer shall secure the payment of compensation in one or more of the following ways:

"(a) By being insured against liability to pay compensation in one or more insurers duly authorized to write compensation insurance in this State.

"(b) By securing from the Director of Industrial Relations a certificate of consent to self- insure, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his employees.

To be signed by authorized corporate officer or partner or individual submitting the Proposal. If Bidder is:
(example)

1. An individual using a firm name, sign: "John Doe, an individual doing business as Blank Company."

2. An individual doing business under his own name, Sign: your name only.

3. A co -partnership, sign: "John Doe and Richard Doe, co -partners doing business as Blank Company, by, John Doe, co-partner.

4. A corporation, sign: "Blank Company, by John Doe, Secretary." (or other title)

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self -insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

DATE: Contractor

By
Signature

3/22/2024

CAL INC

CITY OF SACRAMENTO Drug-Free Policy and Affidavit

\\dgswfp01\shared\facilities shared\contract files th-kw\kw active\city incinerator\18-drug free.docx

DRUG-FREE WORKPLACE POLICY AND AFFIDAVIT

BID PROPOSAL MAY BE DECLARED NONRESPONSIVE IF THIS FORM (COMPLETED) IS NOT ATTACHED.

Pursuant to City Council Resolution CC90-498 dated 6/26/90 the following is required.

The undersigned contractor certifies that it and all subcontractors performing under this Agreement will provide a drug -free workplace by:

1. Publishing a "Drug-Free Workplace" statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition.

2. Establishing a Drug-Free Awareness Program to inform employees about:

a. The dangers of drug abuse in the workplace.
b. The contractor's policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance program. d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.

3. Notify employees that as a condition of employment under this Agreement, employees will be expected to:

a. Abide by the terms of the statement.
b. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace.

4. Making it a requirement that each employee to be engaged in the performance of the Agreement be given a copy on the "Drug-Free Workplace" statement.

5. Taking one of the following appropriate actions, within thirty (30) days of receiving notice from an employee or otherwise receiving such notice, that said employee has received a drug conviction for a violation occurring in the workplace:

a. Taking appropriate disciplinary action against such an employee, up to and including termination; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local health, law enforcement or other appropriate agency.

* I certify that no person employed by this company, corporation, or business has been convicted of any criminal drug statute violation on any job site or project where this company, corporation or business was performing was within three years of the date of my signature below.

EXCEPTION:

Date Violation Type Place of Occurrence

If additional space is required use back of this form.

* The above statement will also be incorporated as a part of each subcontract agreement for any and all subcontractors selected for performance on this project.

IN THE EVENT THIS COMPANY, CORPORATION, OR BUSINESS IS AWARDED THIS CONSTRUCTION AGREEMENT, AS A RESULT OF THIS BID; THE CONTRACTOR WITH HIS/HER SIGNATURE REPRESENTS TO THE CITY THAT THE INFORMATION DISCLOSED IN THIS DOCUMENT IS COMPLETE AND ACCURATE. IT IS UNDERSTOOD AND AGREED THAT FALSE CERTIFICATION IS SUBJECT TO IMMEDIATE TERMINATION BY THE CITY.

The Representations Made Herein On This Document Are Made Under Penalty Of Perjury.

CONTRACTOR'S NAME:

BY: Date:

Signature Title

Effects of violations: a. Suspension of payments under the Agreement. b. Suspension or termination of the Agreement . c.

Suspension or debarment of the contractor from receiving any Agreement from the City of Sacramento for a period not to exceed five years.

CAL INC
President
3/22/2024

RESOLUTION NO. 2024-

Adopted by the Sacramento City Council on April ___, 2023

City of Sacramento Incinerator Demolition Removal (C15002010)

BACKGROUND

A. The City Incinerator at 821 N B Street was built in 1925 to burn the city’s garbage. It operated until 1931 when it was closed due to budget constraints. Since then, the buildings have largely stood vacant. Weather, water infiltration, and age have compromised the structures, prompting a structural engineer and the City’s Housing and Dangerous Buildings Division to classify the structures as “Immediately Dangerous” necessitating prompt demolition.

B. On January 11, 2023, the Department of Public Works issued Request for Qualification (RFQ) No. Q23014541001 for On Call (Various) Trade Opportunities.

One of the categories that was requested as part of this process was for Demolition Services. On May 30, 2023, the City Council passed Motion No. 2023-0131 suspending competitive bidding in the best interest of the City to establish a qualified On-Call Contactor Services List. The recommended contract with Cal, Inc., a qualified contractor on the list, will include demolitions and appropriate disposal of the structure.

C. The estimated cost to complete the Incinerator Demolition Removal Project (C15002010) is $1,220,000. These funds are designated for administrative, implementation, and enforcement costs related to managing waste material, as well as for the City’s legacy landfill program, including closure and liability costs (per Sacramento City Code section 13.24.260).

D. Upon approval of the transfer of $1,220,000 (General Fund, Fund 1001) there will be sufficient funding within the Demolition Removal Project (C15002010) to cover the total project cost, including the construction contract with CAL, Inc. for $744,765, as well as other project expenses such as environmental costs, internal City staff time and project management, and a minor contingency. Any project savings will be returned to Commercial Waste Compliance Project (I15220000) upon completion.

E. There is sufficient funding within the Commercial Waste Compliance Project (I15220000) to complete the transfer of $1,220,000 (General Fund, Fund 1001) to Incinerator Demolition Removal Project (C15002010).

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The Use of the Request for Qualification Q23014541001 for On-Call (Various) Trade Opportunities to satisfy the competitive selection requirements for this contract is approved.

Section 2. The City Manager or the City Manager’s designee is authorized to award a construction contract to CAL, Inc. in an amount not to exceed $744,765 for the City of Sacramento Incinerator Demolition Project.

Section 3. The Incinerator Demolition Removal (C15002010) is established as a new Capital Improvement Project (CIP).

Section 4. The City Manager or the City Manager’s designee is authorized to transfer $1,220,000 (General Fund, Fund 1001) from the expenditure budget of the Commercial Waste Compliance Project (I15220000) to the Sacramento Incinerator Demolition Project (C15002010).

Section 5. The City Manager or the City Manager’s designee is authorized to execute the construction contract to CAL, Inc. in the amount not to exceed $744,765 for the City of Sacramento Incinerator Demolition Project (C15002010).