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1. Lump Sum. By mutual acceptance of a lump sum proposal from Contractor properly itemized and supported by sufficient substantiating data to permit evaluation. Such proposal shall be based solely on Allowable Costs, as defined in Subparagraph 6.06-C, and Allowable Mark-Ups, as defined in Subparagraph 6.06-E, and shall not include any costs or expense that is not permitted by the terms of any provision of the Contract Documents.
2. Unit Prices. By unit prices contained in Contractor’s original Bid and incorporated in the Contract Documents or fixed by subsequent agreement between City and Contractor. Unless otherwise stated in the Bidding Documents, unit prices stated in the Contract Documents or agreed upon by the County and Contractor shall be deemed to include and encompass all Allowable Markups.
3. Time and Materials. By calculating the actual Allowable Costs directly incurred, plus a sum for Allowable Mark-Ups on such Allowable Costs.
4. Deletion of Work. By Unit Prices contained in Contractor’s original Bid and incorporated in the Contract Documents, or by using the Schedule of Values to determine the value of the decrease of the Contract Sum, less the value of any Work performed, plus a reasonable percentage of the decrease for the Contractor’s saved overhead unless the Schedule of Values allocates general conditions costs to individual line items, in which case no percentage of the decrease shall be added. When a change consists of both addition and deletion of Work, the added costs and deleted costs shall be calculated separately, and then added together, resulting in the net cost for the change. The Allowable Mark-Up shall be applied to this net cost.
B. Contractor Maintenance of Daily Records for Changes
1. In the event that Contractor is directed to perform any Extra Work, or should Contractor encounter conditions which the Contractor believes would obligate the City to adjust the Contract Sum and/or the Contract Time, Contractor shall maintain detailed records of the cost of such changes on a daily basis summarized in a daily report supplemented by back-up records. Such records shall include without limitation:
a.
b.
c.
Labor. At the close of each day on which such Extra Work is performed, Contractor shall submit an Extra Work labor report, on forms provided by Director, to Director that sets forth a list of the actual hours spent in performing the Extra Work, that clearly differentiates between the labor expended on the Extra Work and other Work, and the Allowable Costs for such Extra Work performed that day showing the names of workers, their classifications, hours worked and hourly rates.
Materials, Equipment. A list of Allowable Costs of materials and equipment consumed in the performance of the Extra Work on the day on which such Extra Work is performed, together with copies of applicable delivery tickets and unit prices for all materials and for all equipment used the type of equipment, identification number, hours of operation (including loading and transportation) and hourly/daily rates involved for that day.
Other Services or Expenditures. A list of other services and expenditures constituting Allowable Costs incurred in performance of the Extra Work on the day on which such Extra Work is performed, along with documentation verifying the amounts thereof in such detail as Director may require.
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2. In the event that more than one change to the Work is performed by the Contractor in a calendar day, Contractor shall maintain separate records of labor, construction equipment, materials, and equipment for each such change. In the event that any Subcontractor of any tier shall provide or perform any portion of any change to the Work, Contractor shall require that each such Subcontractor maintain records in accordance with this Section.
3. Each daily record maintained hereunder shall be signed by Contractor; such signature shall be deemed Contractor’s representation and warranty that all information contained therein is true, accurate, complete, and relates only to the change referenced therein. All records maintained by Subcontractors of any tier, relating to the costs of a change in the Work shall be signed by such Subcontractor’s authorized project manager or superintendent.
All such records shall be forwarded to the Director on the day the Work is performed (same day) for independent verification. The Director shall attempt to review and reconcile costs for changes on a daily basis. Records not available on the day on which the Extra Work is performed, such as, but not limited to, material invoices, shall be submitted as soon as they are available but not later than five (5) calendar days after the earlier of the day of delivery or incorporation of the particular item of Extra Work at the Site.
4. The Director may additionally require authentication of all time and material tickets and invoices by persons designated by the Director for such purpose. In the event that Contractor shall fail or refuse, for any reason, to maintain or make available for inspection, review, and/or reproduction such records, adjustments to the Contract Sum or Contract Time, if any, on account of any change to the Work may be deemed waived for that day. Contractor’s obligation to maintain back-up records hereunder is in addition to, and not in lieu of, any other Contractor obligation under the Contract Documents with respect to changes to the Work.
5. Waiver by Contractor. Failure to submit such records as are required by this Paragraph daily shall waive any rights for recovery of Allowable Costs incurred for Extra Work performed that day. The failure of the Contractor to secure any required authentication shall, if the City elects in its sole discretion to treat it as such, constitute a waiver by the Contractor of any right to adjustment of the Contract Sum for the Allowable Cost of all or that portion of the Extra Work covered by such non-authenticated ticket or invoice.
C. Allowable Costs
The term “Allowable Costs” shall mean in the case of Extra Work actual costs incurred by Contractor and/or any Subcontractor, regardless of tier, and necessarily involved in direct performance of the Extra Work, or in the case of deleted work the actual costs that would have been incurred in performing deleted work by Contractor and/or any Subcontractor, regardless of tier, and shall be limited to the following costs:
1. Labor. Straight-time wages or salaries, and overtime wages and salaries specifically authorized by City in writing, for employees employed at the site, or at fabrication sites off the site, in the direct performance of the Extra Work or that would have been incurred in the direct performance of the deleted work, based on the actual cost for wages prevailing locally for each craft or type of workers at the time the Extra Work is done or the deleted work is ordered eliminated. Labor costs for equipment operators and helpers shall be reported only when such costs are not included in the invoice for equipment rental. The use of labor classification which would increase the Allowable Cost for Extra Work will not be permitted unless Contractor establishes the necessity for such additional costs.
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2. Benefits. Payroll taxes, insurance, health and welfare, pension, vacation, apprenticeship funds and benefits required by lawful collective bargaining agreements for employees on straight-time wages or salaries, and on overtime wages and salaries specifically authorized by City in writing, for employees employed at the site, or at fabrication sites off the site, in the direct performance of the Extra Work or that would have been incurred in the direct performance of the deleted work.
3. Materials, Consumables. Costs of materials and consumable items which are furnished and incorporated into the Work, as approved by City, or that would have been incorporated into the Work in the case of deleted work shall be at the lowest price available to Contractor but in no event shall such costs exceed competitive wholesale prices obtainable from other Subcontractors, suppliers, manufacturers and distributors in the general vicinity of the site. If City determines, in its discretion, that the cost of materials is excessive, or if Contractor fails to furnish satisfactory evidence of the cost from the actual supplier thereof, then in either case the cost of the materials shall be deemed to be the lowest wholesale price at which similar materials are available in the quantities required at the time they were needed. The City reserves the right to furnish such materials as it deems advisable, and Contractor shall have no claim for costs or profits on materials so furnished. Material invoices must be included with the extra work report to obtain payment.
4. Taxes. Sales taxes on the costs of materials and consumable items described in Paragraph
5.04-C.3 above.
5. Tool, Equipment Rental. Rental charges for necessary machinery and equipment, whether owned or hired, as authorized in writing by City, exclusive of hand tools, used directly in the performance of the Extra Work or that would have been used in the direct performance of the deleted work. Regardless of ownership, such rental charges shall not exceed the hourly rate derived from the most recently published “Rental Rate Blue Book for Construction Equipment” or the “Rental Rate Blue Book for Older Construction Equipment,” as published by K-111, San Jose, California, which is in effect at the time of commencement of the changed work. The Contractor shall attach a copy of the rate schedule to the daily reports required by Paragraph
6.06-B, above. The charges for any machinery and equipment shall cease when the use thereof is no longer necessary for the Extra Work or deleted work. No charge shall be allowed for use of equipment or tools which have a replacement value of $500 or less. The allowable rental rates shall include the cost of fuel, power oil, lubrication, supplies, small tools, necessary attachments, loading, transportation, repairs and maintenance of any kind, depreciation, storage, insurance, and all incidentals. Notwithstanding the provisions of Paragraph 6.06-E below, no mark-up shall be allowed for overhead, profit or bond premiums for use of equipment if the equipment is supplied by an equipment rental firm. If equipment is used intermittently and, when not in use, could be returned to its rental source at less expense to City than holding it at the Site, it shall be returned, unless Contractor elects to keep it at the Site at no expense to City.
Costs incurred while equipment is inoperative due to breakdowns, regular maintenance, or for non-Working Days shall not be allowed. The rental time shall include the time required to move the equipment to the Work from the nearest available source for rental of such equipment and to return it to the source. If such equipment is not moved by its own power, then loading and transportation will be allowed. Neither moving time nor loading and transportation costs will be paid if the equipment is for use on the Project unrelated to the Extra Work. All equipment shall be acceptable to City, in good working condition, and suitable for the purpose for which it is to be used.
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6. Royalties. Additional or saved costs of royalties due to the performance of the Extra Work or deleted work.
7. Insurance, Bonds. Additional or saved costs of insurance and bonds, provided, however, that for Extra Work such costs shall not exceed one percent (1%) of Items 1 through 6 above.
D. Costs Not Allowed
Allowable Costs shall not include any of the following:
1. Wages, salaries, fringe benefits and payroll taxes of Contractor’s and all Subcontractor’s noncraft labor (above a Foreman level);
2. Overhead (including home office overhead), administrative or general expenses of any kind including engineering, estimating, scheduling, drafting, detailing, etc., incurred in connection with Extra Work;
3. Vehicles not dedicated solely for the performance of the extra of deleted work;
4. Small tools (replacement value not exceeding $500);
5. Office expenses, including secretarial and administrative staff, materials and supplies;
6. On-site and off-site trailer and storage rental and expenses;
7. Site fencing;
8. Utilities, including gas, electric, sewer, water, telephone, telefax, copier equipment;
9. Computer and data processing personnel, equipment and software;
10. Federal, state of local business income and franchise taxes;
11. Losses of efficiency or productivity; and
12. Costs and expenses of any kind or item not specifically and expressly included in Paragraph
6.06-C.
E. Allowable Mark-Up
1. Extra Work by contractor (Markup): The following percentages shall be added to the Contractor’s costs and shall constitute the markup for all overhead and profits:
Labor
Materials
Equipment Rental
Other Items and Expenditures
33%
15%
15%
15%
2. Extra Work by Subcontractor (Markup): When all or any part of the extra work is performed by a Subcontractor, the markup provided for the Contractor in 6.06.E.1 shall apply to the Subcontractor’s actual costs. A markup of 5% on the subcontracted portion of each extra work may be added for the Contractor.
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F. Net Allowable Costs
If anyone scope change involves both Extra Work and deleted work in the same portion of the Work and the additive allowable costs exceed the deductive allowable costs, the Allowable Markups on the Extra Work will be only the difference between the two amounts.
6.07 CITY ORIGINATED REQUEST FOR ITEMIZED CHANGE ORDER PROPOSAL REQUEST City may issue a Construction Change Directive or other written request to Contractor describing a proposed change to the Work and requesting the Contractor submit an itemized change order proposal in a format acceptable to City within ten (10) calendar days after City issues the request. The Contractor's change order proposal shall include an analysis of impacts to cost and time, if any, to perform additional work, change Work or delete Work, as applicable, including the effects and impacts, if any, on unchanged Work, estimates of costs (broken down by the cost categories listed in this Paragraph), and Contractor's proposed methods to minimize costs, delay, and disruption to the performance of the Work. If Contractor fails to submit a written change order proposal within such period of time, it shall be presumed that the change described in the City's original proposal request will not result in an increase to the Contract Sum or Contract Time and the change shall be performed by Contractor without additional compensation to Contractor. City's request for itemized change order proposal request does not authorize the Contractor to commence performance of the change.
If City desires that the proposed change be performed, the Work shall be authorized according to the Change Order or Construction Change Directive procedures set forth herein.
6.08 CONTRACTOR ORIGINATED CHANGE ORDER REQUEST (COR)
If the Contractor believes that instructions issued by the City after the effective date of the Contract will result in changes to the Contract Sum or Contract Time or if the Contractor otherwise becomes aware of the need for or desirability of a change in the Work, Contractor may submit a written Change Order Request ("COR") to the City in writing, in a format acceptable to City and in accordance with the notice provisions and other requirements of Article 7 below for Claims. The COR must specify the reasons for the proposed change, cost impacts and relevant circumstances and impacts on the Construction Schedule. The document shall be complete in its description of the Work, its material and labor quantities and detail, and must support and justify the costs and credits claimed by the Contractor. A Critical Path Method schedule Fragnet is required to support and justify any additional time of performance requested by the Contractor. The City will not review any COR which is incomplete. The Contractor may request additional compensation and/or time through a COR but not for instances that occurred more than ten (10) calendar days prior to the notice date. Contractor's failure to initiate a COR within this ten-day period or to provide detailed back-up documentation to substantiate the COR within thirty (30) calendar days of the initial written notice shall be deemed a waiver of the right to adjustment of the Contract Sum or the Contract Time for the alleged change. Any COR that is approved by the City shall be incorporated in a Change Order or Construction Change Directive. If the COR is denied but the Contractor believes that it does have merit, the Contractor shall proceed with the disputed Work and may submit a Claim in accordance with the procedures set forth herein.
6.09 ISSUANCE OF WORK DIRECTIVE (UNILATERAL).
In the event of a dispute as to whether or not Extra Work is required, City shall have the right to unilaterally issue a Work Directive; Contractor shall continue performance of disputed Work pending resolution and shall maintain and submit to City all accounting and cost data necessary to substantiate Contractor’s cost of such disputed Work.
[END OF ARTICLE]
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ARTICLE 7 - CONTRACT PAYMENTS AND CLAIMS
7.01 GENERAL
A.
B.
C.
Payment will be made at the price for each item listed on the bidding form or as Extra Work as provided in the General Conditions.
Initial progress payment will not be made prior to approval by the Director of the Schedule of Values, the Construction Progress Schedule, and the Schedule of Submittals.
No subsequent progress payment will be made prior to receipt by the Director of the monthly revision of the Construction Progress Schedule.
7.02 SCHEDULE OF VALUES FOR PAYMENTS
A. Submission
Upon City’s request, the three (3) lowest bidders shall complete and submit a Preliminary Schedule of Values, within seven (7) calendar days.
In addition, Contractor shall complete and furnish within seven (7) calendar days after receiving the Notice of Award of the Construction Contract a Final Schedule of Values giving a complete breakdown of the Contract Sum for each component of the Work.
B. Content
The Schedule of Values shall be in sufficient detail as the Director may, in its discretion, deem necessary to evaluate progress at any point in the performance of the Work. Unless otherwise specified in the Contract Documents, the Schedule of Values shall include, without limitation, a breakdown of the general categories of Subcontractor work, direct overhead, profit and contingency, and a further breakdown of the general categories of Subcontractor work into separate trade line items of costs for Subcontractor services, labor and material, which is based on actual Subcontractor contract, subcontract, purchase order or vendor prices. If requested by Director, Contractor shall revise the Schedule of Values to allocate sums for Contractor overhead, profit and/or contingency among the individual line items for trade portions of the Work. No amounts shall be reflected in the Schedule of Values or Application for Payment for Extra Work or Deleted Work for which a Change Order has not been executed by Contractor and City or for which a Construction Change Directive has not been issued by City. Amounts that have been mutually agreed to by Change Order or unilaterally determined by City pursuant to a Construction Change Directive shall be segregated from the cost of the base Contract Work and separately listed by line item in the Schedule of Values. The Schedule of Values must be prepared in sufficient detail and supported by sufficient data to substantiate its accuracy as the Director may require.
C. Applications for Payment
The Schedule of Values, when approved by the Director, shall be used as a basis for Contractor's Applications for Payment and may be considered as fixing a basis for adjustments to the Contract Sum.
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D. Revisions
If, at any time, it is determined that the Schedule of Values does not allocate the Contract Sum in a manner that reasonably and fairly reflects the actual costs anticipated to be progressively incurred by Contractor, it shall be revised and resubmitted for the Director’s approval.
7.03 APPLICATIONS FOR PAYMENT
A.
B.
Marked Schedule of Values
Five (5) Days prior to the date set forth in Paragraph 7.03-B below for the monthly progress payment meeting, Contractor shall submit to Director a copy of the proposed Schedule of Values, marked to show the percentage of completion certified by Contractor for each line item in the Schedule of Values, including any stored materials approved for payment by City pursuant to Paragraph 7.03-D, below and any withholdings from Contractor proposed by Director.
Monthly Review
For the purpose of expediting the progress payment procedure, Contractor shall meet with the Director on or before the twentieth (20th) day of each month to review the Contractor's marked Schedule of Values prepared in accordance with Paragraph 7.03-A, above. The Director shall revise as appropriate and sign the marked Schedule of Values to verify such review. If any item in the marked Schedule of Values submitted for payment is disputed during this review, Contractor agrees to use its best efforts to resolve the disputed items with the Director before submitting its Application for Payment. If the Director and Contractor cannot agree, then the percentage completion shall be established at such percentage as the Director, in good faith, determines is appropriate to the actual progress of the Work. No inaccuracy or error in the Director’s good faith estimate shall operate to release Contractor or Surety from any responsibility or liability arising from or related to performance of the Work. The Director shall have the right subsequently to correct any error and dispute any item submitted in Contractor's Application for Payment, regardless of whether an item was identified as disputed in the review process provided for herein.
C. Certification
Each Application for Payment shall be signed and certified by Contractor under penalty of perjury to City that:
1. The data comprising the Application for Payment is accurate and the Work has progressed to the point indicated;
2. To the best of Contractor's knowledge, information and belief, the Work is in accordance with the Contract Documents;
3. Contractor is entitled to payment in the amount certified; and
4. All sums previously applied for by Contractor on account of Work performed by Subcontractors and that have been paid by City have been paid to the Subcontractors performing such Work, without any retention, withholding or backcharge by Contractor.
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D. Stored Materials
Payments may be made by City, at its discretion, on account of materials or equipment not incorporated into the Work but delivered on the ground at the Site and suitably stored by Contractor or stored off-Site under the control of City. Such payments shall only be considered upon submission by Contractor of satisfactory evidence that it has acquired title to same, that the material or equipment will be utilized in the Work and that the material is satisfactorily stored, protected and insured, and that such other procedures are in place satisfactory to City to protect City's interests. To be considered for payment, materials or equipment stored off-Site shall, in addition to the above requirements and unless otherwise specifically approved by City in writing, be stored in a bonded warehouse, fully insured, and available to City for inspection. City shall have sole discretion to determine the amount of material and equipment that may be stored on the Site at any given time.
7.04 PROGRESS PAYMENTS
A. Conditions to Progress Payments
Contractor shall submit its Application for Payment to the Director, using such forms as required by City, once a month on or before the first (1st) Day of the month following the month in which the Work that is the subject of such Application for Payment was performed. Without limitation to any other provisions of the Contract Documents, the following shall be conditions precedent to a proper submission and to the Director approval of each Application for Payment:
1. Submission of a Schedule of Values that reflects the percentages of completion either agreed to or determined by Director in accordance with Paragraph 7.03-B, above;
2. Submission of the Contractor's certification required by Paragraph 7.03-C, above;
3. Submission of conditional releases of stop notice, if any, and bond rights upon progress payment, complying with California Civil Code Section 8132, for all Work performed during the time period covered by the current Application for Payment, signed by Contractor, its Subcontractors of every tier, and all material suppliers to each, and (2) forms of unconditional release of stop notice and bond rights upon progress payment, complying with California Civil Code Section 8134 for all Work performed during the time period covered by the previous Application for Payment, signed by Contractor, its Subcontractors of every tier and all material suppliers to each;
4. Compliance by Contractor with its obligation for maintenance of As-Builts as required by the Contract Documents;
5. Compliance by Contractor with its obligation for submission of monthly and daily reports as required by the Contract Documents;
6. Compliance by Contractor with its obligations for submission of scheduling information and updating of the Construction Schedule as required by Article 4, above and other provisions of the Contract Documents pertaining to preparation or updating of schedule information;
7. Submission of certified payroll records as required by the Contract Documents;
8. Submission of certifications by Contractor and each Subcontractor as required by applicable collective bargaining agreements certifying that all employee benefit contributions due and
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owed pursuant to any applicable collective bargaining agreement have been paid in full; and
9. Compliance by Contractor with all of its other obligations for submission of documentation or performance of conditions which, by the terms of the Contract Documents, constitute conditions to Contractor's right to receive payment for Work performed.
B. Payments by City
Pursuant to California Public Contract Code Section 20104.50, City shall make progress payment of undisputed sums due within thirty (30) Days after receipt by Director of an undisputed and properly submitted Application for Payment, calculated on the basis of ninety-five percent (95%) of value determined pursuant to Paragraph 7.03-B above of the following:
1. The portion of the Work permanently installed and in place;
2. Plus, the value of materials delivered on the ground or in storage as approved by City pursuant to Paragraph 7.03-D, above,
3. Less, the aggregate of previous payments, and
4. Less, any other withholdings authorized by the Contract Documents.
C. Rejection by City
D.
Any Application for Payment determined not to be undisputed, proper and suitable for payment shall be returned to Contractor as soon as practicable, but not later than seven (7) Days, after receipt by City accompanied by an written explanation of the reasons why the payment request was rejected.
Failure by City or Director to either timely reject an Application for Payment or specify any grounds for rejection shall not constitute a waiver of any rights by City. Applications for Payment that are rejected shall be corrected and resubmitted within seven (7) Days after receipt by Contractor.
Interest
If City fails to make a progress payment to Contractor as required by Paragraph 7.04-B, above, City shall pay interest to Contractor equivalent to the legal rate set forth in subdivision (a) of California Code of Civil Procedure Section 685.010. The number of Days available to City to make payment pursuant to Paragraph 7.04-B, above without incurring interest pursuant to this Paragraph shall be reduced by the number of Days by which City exceeds the seven (7) Day return requirement applicable to City as set forth in Paragraph 7.04-C, above.
7.05 FINAL PAYMENT
A. Retention
ln addition to withholdings permitted by Paragraph 7.09 below, a sum equal to five percent (5%) of all sums otherwise due to Contractor as progress payments shall be withheld by city pursuant to Paragraph 7.04-B from each progress payment (“Retention”) and retained until such time as it is due as described herein. A higher Retention amount may be approved by the City Council where project is deemed “substantially complex” by City Council.
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B. Conditions to Final Payment
Contractor shall submit its Application for Final Payment, using such forms as required by Director, prior to requesting a final inspection of the Work in accordance with Paragraph 3.06 above. Such Application for Final Payment shall be accompanied by all the following:
1. An affidavit that payrolls, bills for materials and equipment, and other indebtedness connected with the Project for which City or City's property or funds might be liable have been paid or otherwise satisfied;
2. Contractor’s certification as required by Paragraph 7.03-C, above;
3. Consent of surety, if any, to Final Payment;
4. A certificate evidencing that the insurance required by the Contract Documents is in force;
5. Conditional Waiver and Release Upon Final Payment in the form required by California Civil Code Section 8136 executed by Contractor, all Subcontractors of every tier and by all material suppliers of each, covering the final payment period;
6. Unconditional Waiver and Release Upon Progress Payment in the form required by California Civil Code Section 8136 executed by Contractor, all Subcontractors of every tier and by all material suppliers of each, covering the previous payment period;
7. All Record Documents (including, without limitation, complete and accurate As-Built drawings which shall be kept up to date during the performance of the Work);
8. Documentation that Contractor has inspected, tested, and adjusted performance if every system or facility of the Work to ensure that overall performance is in compliance with the terms of the Contract Documents;
9. Four (4) copies of all warranties from vendors and Subcontractors, operation and maintenance manuals, instructions and related agreements, and equipment certifications and similar documents;
10. Certifications by Contractor and each Subcontractor as required by applicable collective bargaining agreements that all employee benefit contributions due and owing pursuant to any applicable collective bargaining agreement have been paid in full;
11. Releases of rights and claims relating to patents and trademarks, as required by the Contract Documents; and
12. Any other documents or information required by the Contract Documents as a condition of Final Payment or Final Completion.
C. Final Payment
Pursuant to the Public Contract Code Section 7107, within sixty (60) Days after City issues the Notice
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of Completion to Contractor, the Final Payment, including Retention, shall be released to Contractor, subject to the City’s right to withhold 150% of any disputed amounts.
D. Disputed Amounts
Pursuant to California Public Contract Code 7107, City may deduct and withhold from the Final Payment due under Paragraph 7.05-C, above, an amount up to 150% of any disputed amounts, including, without limitation, amounts to protect City against any loss caused or threatened as a result of Contractor's failing to fully perform all of those obligations that are required to be fulfilled by Contractor as a condition to Final Completion and Final Payment. Alternatively, City may elect, in its sole discretion, to accept the Work without correction or completion and adjust the Contract Sum pursuant to the Contract Documents.
E. Acceptance of Final Payment
Acceptance of Final Payment by Contractor shall constitute a waiver of all rights by Contractor against City for recovery of any loss, excepting only those Claims that have been submitted by Contractor in the manner required by the Contract Documents prior to or at the time of the Final Payment.
7.06 MISCELLANEOUS
A. Joint Payment
City shall have the right, if deemed necessary in its sole discretion, to issue joint checks made payable to Contractor and any Subcontractor(s) of any Tier. The joint check payees shall be solely responsible for the allocation and disbursement of funds included as part of any such joint payment.
Endorsement on such check by a payee shall be conclusively presumed to constitute receipt of payment by such payee. In no event shall any joint check payment be construed to create any contract between City and a Subcontractor of any Tier, any obligation from City to such Subcontractor or any third party rights against City or Director.
B. Withholding/Duty to Proceed
The payment, withholding or retention of all or any portion of any payment claimed to be due and owing to Contractor shall not operate in any way to relieve Contractor from its obligations under the Contract Documents. Contractor shall continue diligently to prosecute the Work without reference to the payment, withholding or retention of any payment. The partial payment, withholding or retention by City in good faith of any disputed portion of a payment, whether ultimately determined to be correctly or incorrectly asserted, shall not constitute a breach by City of the Construction Contract and shall not be grounds for an adjustment of the Contract Sum or Contract Time.
C.
D.
No Acceptance
No payment by City or partial or entire use of the Work by City shall be construed as approval or acceptance of the Work, or any portion thereof.
Contractor Payment Warranty
Submission of an Application for Payment shall constitute a representation and warranty by Contractor that:
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1. Title to Work covered by an Application for Payment will pass to City either by incorporation into the construction or upon receipt of payment by Contractor, whichever occurs first; and
2. Work covered by previous Applications for Payment are free and clear of liens, stop notices, claims, security interests or encumbrances imposed by the Contractor or any other person.
E. Corrections
No inaccuracy or error in any Application for Payment provided by Contractor shall operate to release Contractor from the error, or from losses arising from the Work, or from any obligation imposed by the Contract Documents. City retains the right to subsequently correct any error made in any previously approved Application for Payment, or progress payment issued, by adjustments to subsequent payments.
7.07 PAYMENTS BY CONTRACTOR
Contractor shall not include in its Applications for Payment sums on account of any Subcontractor's portion of the Work that it does not intend to pay to such Subcontractor. Upon receipt of payment from City, Contractor shall pay the Subcontractor performing Work on the Project, out of the amount paid to Contractor on account of such Subcontractor's portion of the Work, the amount to which said Subcontractor is entitled in accordance with the terms of its contract with Contractor and applicable laws, including, without limitation, California Public Contract Code Section 7107. Contractor shall remain responsible notwithstanding a withholding by City pursuant to the terms of these Contract Documents, to promptly satisfy from its own funds sums due to all Subcontractors who have performed Work that is included in Contractor's Application for Payment. Contractor shall, by appropriate agreement, require each Subcontractor to make payments to its subcontractors and material suppliers in similar manner. City shall have no obligation to pay or be responsible in any way for payment to a Subcontractor of any tier or material supplier.
7.08 PAYMENTS WITHHELD
A. Withholding by City
In addition to any other amounts which City may have the right to retain under the Contract Documents, City may withhold a sufficient amount of any payment otherwise due to Contractor as City, in its sole discretion, may deem necessary to cover actual or threatened loss due to any of the following:
1. Third Party Claims. Third-party claims or stop notices filed or reasonable evidence indicating probable filing of such claims or stop notices. City shall promptly inform Contractor of any third party claims related to this Contract;
2. Defective Work. Defective Work not remedied;
3. Nonpayment. Failure of Contractor to make proper payments to its Subcontractors for services, labor, materials or equipment;
4. Inability to Complete. Reasonable doubt that the Work can be completed for the then unpaid balance of the Contract Sum or within the Contract Time;
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5. Violation of Applicable Laws. Failure of Contractor or its Subcontractors to comply with applicable laws or lawful orders of governmental authorities;
6. Penalty. Any claim or penalty asserted against City by virtue of Contractor’s failure to comply with applicable laws or lawful orders of governmental authorities (including, without limitation labor laws);
7. Failure to Meet Contract Time. Any damages which may accrue as a result of Contractor failing to meet the Construction Schedule or failing to perform within the Contract Time;
8. Setoff. Any reason specified elsewhere in the Contract Documents as grounds for a withholding offset or set off or that would legally entitle City to a set-off or recoupment;
9. Consultant Services. Additional professional, consultant or inspection services required due to Contractor’s failure to comply with the Contract Documents;
10. Liquidated Damages. Liquidated damages assessed against Contractor;
11. Materials. Materials ordered by City pursuant to the Contract Documents;
12. Damages. Loss caused by Contractor or Subcontractor to City, Separate Contractors or any other person or entity under contract to City;
13. Clean Up. Clean up performed by City and chargeable to Contractor pursuant to the Contract Documents;
14. Employee Benefits. Failure of Contractor to pay contributions due and owing to employee benefits funds pursuant to any applicable collective bargaining agreement or trust agreement;
15. Required Documents. Failure of Contractor to submit on a timely basis, proper and sufficient documentation required by the Contract Documents, including, without limitation, Construction Schedule updates, ‘look ahead’ schedules, Submittals, Schedules of Values, information on Subcontractors, Change Orders, certifications and other required reports or documentation; and
16. Other Breach. A breach of any obligation or provision of the Contract Documents.
B. Release of Withholding
C.
If and when City determines, in its sole discretion, that the above grounds for withholding have been removed and that all losses incurred or threatened have been paid, credited or otherwise satisfied, then payment shall be made for amounts withheld because of them.
Application of Withholding
City may apply sums withheld pursuant to Paragraph 7.08-A above, in payment of any loss or threatened loss as City determines, in its sole discretion, to be appropriate. Such payments may be made without a prior judicial determination of City’s actual rights with respect to such loss. Contractor agrees and hereby designates City as its agent for such purposes, and agrees that such payments shall be considered as payments made under Construction Contract by City to Contractor. City shall not be liable to Contractor for such payments made in good faith. City shall submit to Contractor an accounting of such funds disbursed on behalf of Contractor. As an alternative to such payment, City
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may, in its sole discretion, elect to exercise its right to adjust the Contract Sum as provided in the Contract Documents.
D. Continuous Performance
Provided City pays the undisputed portion, if any, of funds withheld in good faith, Contractor shall maintain continuous and uninterrupted performance of the Work during the pendency of any disputes or disagreements with City.
7.09 SUBSTITUTION OF SECURITIES
A. Public Contract Code
Pursuant to the requirements of California Public Contract Code Section 22300, upon Contractor’s request, City will make payment to Contractor of any funds withheld from payments to ensure performance under the Contract Documents if Contractor deposits with City, or in escrow with a California or federally chartered bank in California acceptable to City (“Escrow Agent”), securities eligible for the investment of State Funds under Government Code Section 16430, or bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed to by the Contractor and the City, upon the following conditions:
1. Contractor shall be the beneficial owner or any securities substituted for monies withheld for the purpose of receiving any interest thereon.
2. All expenses relating to the substitution of securities under Public Contract Code Section 22300 and under this Paragraph 7.04, including, but not limited to City’s overhead and administrative expenses, and expenses of Escrow Agent shall be the responsibility of Contractor.
3. Securities or certificates of deposit substituted for monies withheld shall be of a value of at least equivalent to the amounts of retention to be paid to Contractor pursuant to the Contract Documents.
4. If Contractor chooses to deposit securities in lieu of monies withheld with an Escrow Agent, Contractor, City and Escrow Agent shall, as a prerequisite to such deposit, enter into an escrow agreement, using the City’s form, “Escrow Agreement for Deposit of Securities in Lieu of Retention.”
5. Contactor shall obtain the written consent of Surety to such agreement.
6. Securities, if any, shall be returned to Contractor only upon satisfactory Final Completion of the Work.
B. Substitute Security
To minimize the expense caused by such substitution of securities, Contractor shall, prior to or at the time Contractor requests to substitute security, deposit sufficient security to cover the entire amount to be withheld. Should the current market value of such substituted security fall below the amount for which it was substituted, or any other amounts which the City withholds pursuant to the Contract Documents, Contractor shall immediately and at Contractor’s expense and at no cost to City deposit additional security qualifying under Public Contract Code Section 22300 until the current market value of the total security deposited is no less than the amount subject to withholding under the Contract
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Documents. Securities shall be valued as often as conditions of the securities market warrant, but in no case less frequently than once per month.
C. Deposit of Retentions
Alternatively, subject to the conditions set forth in Paragraph 7.04-A above, upon request of Contractor, City shall make payment of retentions directly to Escrow Agent at the expense of Contractor, provided that Contractor, City and Escrow Agent shall, as a prerequisite such payment, enter into an escrow agreement in the same form as prescribed in Part 4 of Paragraph A, above. At the expense of Contractor and at no cost to City, Contractor may direct the investment of the payments into securities and interest bearing accounts, and Contractor shall receive the interest earned on the investments. Escrow Agent shall hold such direct payments by City under the same terms provided herein for securities deposited by Contractor. Upon satisfactory Final Completion of the Work, Contractor shall receive from Escrow Agent all securities, interest and payments received by Escrow Agent from City, less escrow fees and charges of the Escrow Account, according to the terms of Public Contract Code Section 22300 and the Contract Documents.
D. Time for Election of Substitution of Securities
Notwithstanding the provision of 7.04 A, B, and C above and California Public Contract Code Section 22300, the failure of Contractor to request the Substitution of eligible securities for monies to be withheld by City within ten (10) days of the award of Contract to Contractor shall be deemed to be a waiver of all such rights.
7.10 CLAIMS
A. Arising of Claim.
1. Scope Change. When Contractor has a claim for an increase in the Contract Sum or Contract Time due to a scope change which has not yet become final, a “claim” will be deemed to arise once the Director has issued a decision denying, in whole or in part, the Contractor’s Change Order Request.
2. Other Claims. In the case of a Claim by Contractor that does not involve an adjustment to the Contract Sum or Contract Time due to a scope change and which has not become final, the Claim may be asserted if, and only if, Contractor gives written notice to City of intent to file the Claim within three (3) days of the date of discovery relative to such circumstances (even if Contractor has not yet been damaged or delayed). Such written notice of intent to file a Claim shall be valid if, and only if, it identifies the event or condition giving rise to the Claim, states its probable effect, if any with respect to Contractor's entitlement to an adjustment of the Contract Sum or Contract Time and complies with the requirements of Paragraph 7.11-B, below. For purposes of this Paragraph 7.11, a Claim for which such written notice is required and has been given by Contractor shall be deemed to arise on the date that such written notice is received by City.
B. Content of Claim
A Claim by Contractor must include all of the following:
1. A statement that it is a Claim and a request for a decision on the Claim;
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2. A detailed description of the act, error, omission, unforeseen condition, event or other circumstance giving rise to the Claim.
3. If the Claim involves an adjustment to the Contract Sum or Contract Time due to a change in scope, a statement demonstrating that all requisite notices were provided, including, without limitation, timely written notice and a Change Order Request as required by Article 6 of these General Conditions and timely notice of delay and request for extension of time in accordance with Article 3. If the Claim does not involve an adjustment to the Contract Sum or Contract Time due to a change in scope, a statement demonstrating that a notice of intent to file the Claim was timely submitted as required by Paragraph 7.10-A.2, above;
4. A detailed justification for any remedy or relief sought by the Claim including without limitation, a detailed cost breakdown in the form required for submittal of Change Order Requests and actual job cost records demonstrating that the costs have been incurred;
5. If the Claim involves a request for adjustment of the Contract Time, written documentation demonstrating that Contractor has complied with the requirements of the Contract Documents and written substantiation (including, without limitation, a Time Impact Analysis) demonstrating that Contractor is entitled to an extension of time under the Contract Documents; and
6. A written certification signed by a managing officer of Contractor's organization, who has the authority to sign contracts and purchase orders on behalf of Contractor and who has personally investigated and confirmed the truth and accuracy of the matters set forth in such certification, in the 'following form:
"I hereby certify under penalty of perjury that I am a managing officer of (Contractor's name) and that I have reviewed the Claim presented herewith on Contractor's behalf and/or on behalf of (Subcontractor's name) and that, to the best of my knowledge after conducting a diligent inquiry into the facts of the Claim, the following statements are true and correct:
The facts alleged in or that form the basis for the Claim are, to the best of my knowledge following diligent inquiry, true and accurate; and,
(a) I do not know of any facts or circumstances, not alleged in the Claim, that by reason of their not being alleged render any fact or statement alleged in the Claim materially misleading; and,
(b) I have, with respect to any request for money or damages alleged in or that forms the basis for the Claim, reviewed the job cost records (including those maintained by Contractor and by any Subcontractor, of any tier, that is asserting all or any portion of the Claim) and confirmed with reasonable certainty that the losses or damages suffered by Contractor and/or such Subcontractor were in fact suffered in the amounts and for the reasons alleged in the Claim; and, (c) I have, with respect to any request for extension of time or claim of delay, disruption, hindrance or interference alleged in or that forms the basis for the Claim, reviewed the job schedules (including those maintained by Contractor and the Subcontractor, of any tier, that is asserting all or any portion of the Claim) and confirmed on an event-by-event basis that the delays or disruption suffered by Contractor and/or such Subcontractor were in fact experienced for the durations, in the manner, and with the consequent effects on the time and/or sequence of
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3. Meet and Confer. If Contractor disputes City's response, or if City fails to respond within the prescribed time set forth in Paragraph 7.10-E.1 and 7.10-E.2, above, Contractor may so notify City, in writing, within fifteen (15) days of City's response, or within fifteen (15) days of City’s response due date in the event of a failure to respond, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon such demand, City shall schedule a meet and confer conference within thirty (30) days of such demand, for discussion of settlement of the dispute.
F. Finality of Decision
If Contractor disputes the Director’s decision under this Article, it shall commence the Dispute Resolution Process as set forth in Article 15 of these General Conditions by filing a Statement of Dispute within seven (7) days after receipt of the Director’s response.
G. Continuing Contract Performance/Duty to Proceed with Disputed Work Contractor shall not delay or postpone any Work pending resolution of any claims, disputes or disagreements. Pending final resolution of a claim, the Contactor shall proceed diligently with performance of the Contract and the City shall continue to make payments for undisputed Work in accordance with the Contract Documents. In the event of disputed Work, City shall have the right to unilaterally issue a Work Directive and Contractor shall continue performance pending resolution of the dispute and shall maintain the accounting and cost data to substantiate the cost of such disputed work. [END OF ARTICLE]
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ARTICLE 8 - MATERIALS AND EQUIPMENT
8.01 GENERAL
A. The Contractor shall furnish all materials and equipment needed to complete the Work and installations required under the terms of this Contract, except those materials and equipment specified to be furnished by the City.
B. The Contractor shall submit satisfactory evidence that the materials and equipment to be furnished and used in the work are in compliance with the Specifications. Materials and equipment incorporated in the Work and not specifically covered in the Specifications shall be the best of their kind. Unless otherwise specified, all materials and equipment incorporated in the Work under the Contract shall be new.
8.02 QUALITY AND WORKMANSHIP
All material and equipment furnished by the Contractor shall be new, high grade, and free from defects and imperfections, unless otherwise hereinafter specified. Workmanship shall be in accordance with the best standard practices. All materials and equipment must be of the specified quality and equal to approved samples, if samples have been required. All Work shall be done and completed in a thorough, workmanlike manner, notwithstanding any omission from the Specifications or Drawings, and it shall be the duty of the Contractor to call attention to apparent errors or omissions and request instructions before proceeding with the Work. The Director may, by appropriate instructions, correct errors and supply omissions, which instructions shall be binding upon the Contractor as though contained in the original Specifications or Drawings. All Work performed under the Specifications will be inspected by the Director as provided in Paragraph 8.04. All materials and equipment furnished and all Work done must be satisfactory to the Director. Work, material, or equipment not in accordance with the Specifications, in the opinion of the Director shall be made to conform thereto. Unsatisfactory materials and equipment will be rejected, and if so ordered by the Director, shall, at the Contractor's expense, be immediately removed from the vicinity of the Work.
8.03 8.04
TRADE NAMES AND "OR APPROVED EQUAL" PROVISION
Whenever in the Specifications or Drawings the name or brand of a manufactured article is used it is intended to indicate a measure of quality and utility or a standard. Except in those instances where the product is designated to match others in use on a particular improvement either completed or in the course of completion, the Contractor may substitute any other brand or manufacture of equal appearance, quality, and utility on approval of the Director, provided the use of such brand or manufacture involves no additional cost to the City.
APPROVAL OF MATERIALS
A. The Contractor shall furnish without additional cost to the City such quantities of construction materials as may be required by the Director for test purposes. He/she shall place at the Director's disposal all available facilities for and cooperate with him in the sampling and testing of all materials and workmanship. The Contractor shall prepay all shipping charges on samples. No samples are to be submitted with the bids unless otherwise specified.
B. Each sample submitted shall be labeled. A letter, in duplicate, submitting each shipment of samples shall be mailed to the Director by the Contractor. Both the label on the sample and the letter of transmittal shall indicate the material represented, its place of origin, the names of the producer and the Contractor, the Specifications number and title, and a reference to the applicable Drawings and Specifications paragraphs.
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C.
D.
Materials or equipment of which samples are required shall not be used on the Work until approval has been given by the Director in writing. Approval of any sample shall be only for the characteristics of the uses named in such approval and no other. No approval of a sample shall be taken in itself to change or modify any Contract requirement.
Failure of any material to pass the specified tests, including life cycle maintenance data may be sufficient cause for refusal to consider under this Contract, any further sample of the same brand or make of that material.
8.05 ORDERING MATERIALS AND EQUIPMENT
One copy of each of the Contractor's purchase orders for materials and equipment forming a portion of the Work must be furnished to the Director, if requested. Each such purchase order shall contain a statement that the materials and equipment included in the order are subject to inspection by the City. Materials and equipment purchased locally will, at the City’s discretion, be inspected at the point of manufacture or supply, and materials and equipment supplied from points outside the Los Angeles area will be inspected upon arrival at the job, except when other inspection requirements are provided for specific materials in other sections of the Contract Documents.
8.06 AUTHORITY OF THE DIRECTOR
A.
B.
On all questions concerning the acceptability of materials or machinery, the classification of materials, the execution of the Work, and conflicting interests of Contractors performing related work, the decision of the Director shall be final and binding.
The Director will make periodic observations of materials and completed work to observe their compliance with Drawings, Specifications, and design and planning concepts, but he/she is not responsible for the superintendence of construction processes, site conditions, operations, equipment, personnel, or the maintenance of a safe place to work or any safety in, on, or about the site of work.
8.07 INSPECTION
All materials furnished and work done under this Contract will be subject to rigid inspection. The Contractor shall furnish, without extra charge, the necessary test pieces and samples, including facilities and labor for obtaining them, as requested by the Director. The Director, or his/her authorized agent or agents, at all times shall have access to all parts of the shop and the works where such materials under his/her inspection is being manufactured or the work performed. Work or material that does not conform to the Specifications, although accepted through oversight, may be rejected at any stage of the Work. Whenever the Contractor is permitted or directed to do night work or to vary the period during which work is carried on each day, he/she shall give the Director due notice, so that inspection may be provided. Such work shall be done under regulations to be furnished in writing by the Director.
8.08 INFRINGEMENT OF PATENTS
The Contractor shall hold and save the City, its officers, agents, servants, and employees harmless from and against all and every demand or demands, of any nature or kind, for or on account of the use of any patented invention, process, equipment, article, or appliance employed in the execution of the Work or included in the materials or supplies agreed to be furnished under this Contract, and should the Contractor, his/her agents, servants, or employees, or any of them, be enjoined from furnishing or using any invention, process, equipment, article, materials, supplies or appliance supplied or required to be supplied or used under this Contract, the Contractor shall promptly substitute other inventions, processes, equipment, articles, materials, supplies, or
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appliances in lieu thereof, of equal efficiency, quality, finish, suitability, and market value, and satisfactory in all respects to the Director. Or in the event that the Director elects, in lieu of such substitution, to have, supplied, and to retain and use, any such invention, process, equipment, article, materials, supplies, or appliances, as may by this Contract be required to be supplied and used, in that event the Contractor shall at his/her expense pay such royalties and secure such valid licenses as may be requisite and necessary to enable the City, its officers, agents, servants, and employees, or any of them, to use such invention, process, equipment, article, materials, supplies, or appliances without being disturbed or in way interfered with by any proceeding in law or equity on account thereof. Should the Contractor neglect or refuse promptly to make the substitution hereinbefore required, or to pay such royalties and secure such licenses as may be necessary and requisite for the purpose aforesaid, then in that event the Director shall have the right to make such substitution, or the City may pay such royalties and secure such licenses and charge the cost thereof against any money due the Contractor from the City, or recover the amount thereof from him/her and his/her surety, notwithstanding final payment under this Contract may have been made.
[END OF ARTICLE]
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ARTICLE 9 – SUBMITTALS
9.01 GENERAL
A. The Contractor shall submit samples, drawings, and data for the Director's approval which demonstrate fully that the construction, and the materials and equipment to be furnished will comply with the provisions and intent of the Drawings and Specifications.
B. Specific items to be covered by the submittals shall include, as a minimum, the following:
1. 2.
3. For structures, submit all shop, setting, equipment, miscellaneous iron and reinforcement drawings and schedules necessary.
For conduits, submit a detailed layout of the conduit with details of bends and fabricated specials and furnish any other details necessary. Show location of shop and field welds.
For equipment which requires electrical service, submit detailed information to show power supply requirements, wiring diagrams, control and protection schematics, shop test data, operation and maintenance procedures, outline drawings, and manufacturer's recommendation of the interface/interlock among the equipment.
4. For mechanical equipment submit all data pertinent to the installation and maintenance of the equipment including shop drawings, manufacturer's recommended installation procedure, detailed installation drawings, test data and curves, maintenance manuals, and other details necessary.
5. Samples
6. Colors
7. Substitutions
8. Manuals
9. As-built drawings
10. Safety plans required by Article 10
9.02 9.03
PRODUCT HANDLING
A. Submittals shall be accompanied by a letter of transmittal and shall be in strict accordance with the provisions of this Article.
B. Submit priority of processing when appropriate.
SCHEDULE OF SUBMITTALS
A. The Contractor shall prepare and submit a schedule of submittals. The schedule of submittals shall be in the form of a submittal log. Refer to Paragraph 9.12.
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9.04 SHOP DRAWINGS
A.
B.
C.
All shop drawings shall be produced to a scale sufficiently large to show all pertinent features of the item and its method of connection to the Work.
All shop drawing prints shall be made in blue or black line on white background. Reproductions of City/Contract Drawings are not acceptable.
The overall dimensions of each drawing submitted to the Director shall be equal to one of the City's standard sheet sizes as listed below. The title block shall be located in the lower right hand corner of each drawing and shall be clear of all line Work, dimensions, details, and notes.
Sheet Sizes
Height X Width
11" X 8 1/2"
11" X 17"
24" X 36"
30” X 42”
9.05 COLORS
Unless the precise color and pattern are specified elsewhere, submit accurate color charts and pattern charts to the Director for his/her review and selection whenever a choice of color or pattern is available in a specified product. Label each chart naming the source, the proposed location of use on the project, and the project.
9.06 9.07
MANUFACTURERS' LITERATURE
Where contents of submitted literature from manufacturers includes data not pertinent to the submittal, clearly show which portions of the contents are being submitted for review.
SUBSTITUTIONS
A. The Contract is based on the materials, equipment, and methods described in the Contract Documents.
Any Contractor proposed substitutions are subject to the Director’s approval.
The Director will consider proposals for substitution of materials, equipment, and methods only when such proposals are accompanied by full and complete technical data, and all other information, including life cycle maintenance data, required by the Director to evaluate the proposed substitution.
B.
C.
Any requests for substitutions by the Contractor must be made within forty-five (45) calendar days from the Issuance Date on the Notice to Proceed. Otherwise, such requests will not be considered.
Trade names and "or approved equal" provision as set forth in Paragraph 8.03.
9.08 MANUALS
A. When manuals are required to be submitted covering items included in this Work, prepare and submit such manuals in approximately 8-1/2" X 11" format in durable plastic binders. In addition, manuals shall be submitted in electronic format. Manuals shall contain at least the following:
1. Identification on, or readable through, the front cover stating general nature of the manual.
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2. Neatly typewritten index near the front of the manual, furnishing immediate information as to location in the manual of all emergency data regarding the installation.
3. 4.
Complete instructions regarding operation and maintenance of all equipment involved.
Complete nomenclature of all replaceable parts, their part numbers, current cost, and name and address of nearest vendor of parts.
5. 6.
Copy of all guarantees and warranties issued.
Copy of drawings with all data concerning changes made during construction.
B. Where contents of manuals include manufacturers' catalog pages, clearly indicate the precise items included in this installation and delete, or otherwise clearly indicate, all manufacturers' data with which this installation is not concerned.
9.09 AS-BUILT DRAWINGS
A. When required to be submitted covering items included in this Work, the Contractor shall deliver to the City one complete set of final As-Built hard copy drawings together with a set of AutoCAD drawing files in electronic format showing completed building, “as-built” for City records before the Contract will be accepted by the City.
B.
C.
The drawings shall be duplicates and at the same size and dimensional scale as the originals. They shall be on a polyester translucent base material with a minimum sheet thickness of .003 inch (.08mm).
The legibility and contrast of each drawing submitted to the City shall be such that every line, number, letter, and character is clearly readable in a full size blow back from a 35 mm microfilm negative of the drawing.
9.10 9.11
SUBMITTALS QUANTITIES
A. Submit one (1) copy via email to [email protected] of all data and drawings unless specified otherwise.
B. Submit all samples, unless specified otherwise, in the quantity to be returned, plus two, which will be retained by the Director.
IDENTIFICATION OF SUBMITTALS
Completely identify each submittal and re-submittal by showing at least the following information:
A. Name and address of submitter, plus name and telephone number of the individual who may be contacted for further information.
B.
C.
Name of project as it appears in the Contract Documents and Specification No.
Drawing number and Specifications section number other than this section to which the submittal applies.
D. Whether this is an original submittal or re-submittal.
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E. For samples, indicate the source of the sample.
9.12 SCHEDULE OF SUBMITTALS
A.
B.
C.
Submit initial schedule of submittals within five (5) Working Days after the Issuance Date on Notice to Proceed.
Submit revised schedule of submittals within five (5) Working Days after date of request from the Director.
The Director will review schedule of submittals and will notify Contractor that schedule is acceptable or not acceptable within five (5) Working Days after receipt.
9.13 COORDINATION OF SUBMITTALS
A. Prior to submittal for the Director’s review, use all means necessary to fully coordinate all material, including the following procedures:
1. Determine and verify all field dimensions and conditions, materials, catalog numbers, and similar data.
2. Coordinate as required with all trades and with all public agencies involved.
3. Secure all necessary approvals from public agencies and others and signify by stamp, or other means, that they have been secured.
4. Clearly indicate all deviations from the Specifications.
B. Unless otherwise specifically permitted by the Director, make all submittals in groups containing all associated items; the Director may reject partial submittals as not complying with the provisions of the Specifications.
9.14 TIMING FOR SUBMITTALS
A. Make all submittals far enough in advance of scheduled dates of installation to provide all required time for reviews, for securing necessary approvals, for possible revision and re-submittal, and for placing orders and securing delivery.
B.
C.
In scheduling, allow at least 15 Working Days for the Director’s review, plus the transit time to and from the City office.
Manuals shall be submitted prior to performing functional tests.
9.15 APPROVAL BY CITY
A. Each submittal, except manuals, schedule of costs for progress payments, and as-built drawings will be returned to the Contractor marked "No Exceptions Taken," “Make Corrections Noted - Do Not Resubmit,” or “Make Corrections Noted - Resubmit.” Manuals, schedule of costs, and as-built drawings will be returned to Contractor via email for re-submittal if incomplete or unacceptable.
B. Submittals marked "Approved as Noted" need not be resubmitted, but the notes shall be followed.
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C.
D.
If submittal is returned for correction, it will be marked to indicate what is unsatisfactory.
Resubmit one (1) original hard copy and one (1) electronic copy (via email to [email protected]) of the revised drawings or data as indicated.
E. Approval of each submittal by the Director will be general only and shall not be construed as:
1. Permitting any departures from the Specifications requirements.
2. Relieving the Contractor of the responsibility for any errors and omissions in details, dimensions, or of other nature that may exist.
3. Approving departures from additional details or instructions previously furnished by the Director.
9.16 CHANGES TO APPROVED SUBMITTALS
A. A re-submittal is required for any proposed change to an approved submittal. Changes which require re-submittal include, but are not necessarily limited to, drawing revisions, changes in materials and equipment, installation procedures and test data. All re-submittals shall include an explanation of the necessity for the change.
B. Minor corrections to an approved submittal may be accomplished by submitting a "Corrected Copy". [END OF ARTICLE]
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ARTICLE 10 – SAFETY
10.01 PROTECTION OF PERSONS AND PROPERTY
A. Contractor's Responsibility: Notwithstanding any other provision of the Contract Documents, the Contractor shall be solely and completely responsible for conditions of the job site, including safety of all persons and property, during performance of the Work. This requirement will apply continuously and will not be limited to normal working hours. Safety and sanitary provisions shall conform to all applicable Federal, State, County, and local laws, regulations, ordinances, standards, and codes. Where any of these are in conflict, the more stringent requirement shall be followed.
B.
C.
Sanitary Facilities. The Contractor shall furnish and maintain sanitary facilities by the worksites for the entire construction period.
Protection of the Public. The Contractor shall take such steps and precautions as his/her operations warrant to protect the public from danger, loss of life, loss of property or interruption of public services.
Unforeseen conditions may arise which will require that immediate provisions be made to protect the public from danger or loss, or damage to life and property, due directly or indirectly to prosecution of work under this contract. Whenever, in the opinion of the Director, a condition exists which the Contractor has not taken sufficient precaution of public safety, protection of utilities and/or protection of adjacent structures or property, the Director will order the Contractor to provide a remedy for the condition. If the Contractor fails to act on the situation within a reasonable time period as determined by the Director, or in the event of an emergency situation, the Director may provide suitable protection by causing such work to be done and material to be furnished as, in the opinion of the Director, may seem reasonable and necessary. The cost and expense of all repairs (including labor and materials) as are deemed necessary, shall be borne by the Contractor. All expenses incurred by the City for emergency repairs will be deducted from the final payment due to the Contractor.
10.02 PROTECTION FROM HAZARDS
A. Trench Excavation
Excavation for any trench four (4) feet or more in depth shall not begin until the Contractor has received approval from the Director of the Contractor's detailed plan for worker protection from the hazards of caving ground during the excavation of such trench. Such plan shall show the details of the design of shoring, bracing, sloping or other provisions to be made for worker protection during such excavation.
No such plan shall allow the use of shoring, sloping or protective system less effective than that required by the Construction Safety Orders of the Division of Occupational Safety and Health, and if such plan varies from the shoring system standards established by the Construction Safety Orders, the plan shall be prepared and signed by an engineer who is registered as a Civil or Structural Director in the State of California.
B. Confined Spaces
Contractor shall comply with all of the provisions of General Industry Safety Orders of the California Code of Regulations. Entry of a confined space shall not be allowed until the Contractor has received approval from the Director of the Contractor’s program for confined space entry. Confined space means a space that (1) Is large enough and so configured that an employee can bodily enter and perform assigned Work; and (2) Has limited or restricted means for entry or exit (for example, tanks, vessels, silos, storage bins, hoppers, vaults, and pits are spaces that may have limited means of entry); and (3) Is not designed for continuous employee occupancy. Failure to submit a confined space entry program
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may result in actions as provided in Article 5: “Suspension or Termination of Contract.” C. Material Safety Data Sheet
Contractor shall comply with all of the provisions of General Industry Safety Orders of the California Administrative Code. The Contractor shall submit to the Director a Material Safety Data Sheet (MSDS) for each hazardous substance proposed to be used, ten (10) days prior to the delivery of such materials to the job site or use of such materials at a manufacturing plant where the Director is to perform an inspection. For materials which are to be tested in City laboratories, the MSDS shall be submitted with the sample(s). Hazardous substance is defined as any substance included in the list (Director's List) of hazardous substances prepared by the Director, California Department of Industrial Relations, pursuant to Labor Code Section 6382. Failure to submit an MSDS for any hazardous substance may result in actions as provided in Article 5, "Suspension or Termination of Contract".
10.03 DIFFERING SITE CONDITIONS
A. Differing Site Conditions Defined. The Contractor shall promptly, and before such conditions are disturbed, notify the Director in writing of any Differing Site Conditions. Differing Site Conditions are those conditions, located at the project site or in existing improvements and not otherwise ascertainable by Contractor through the exercise of due diligence in the performance of its inspection obligations in the Contract Documents, encountered by Contractor in digging trenches or other excavations(s) that extend deeper than four feet below the surface of the ground that constitute:
1. Material that the Contractor believes may be material that is hazardous waste as defined in Section 25117 of the Health and Safety Code, which is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law.
2. Subsurface or latent physical conditions at the site differing materially from those indicated in these Contract Documents.
3. Unknown physical conditions at the site, of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in Work of the character provided for in these Contract Documents.
B.
C.
D.
Notice by Contractor. If the Contractor encounters conditions it believes constitute Differing Site Conditions, then notice of such conditions shall, before such conditions are disturbed, be promptly reported to the Director followed within twenty-four (24) hours by a further written notice stating a detailed description of the conditions encountered.
The Director will promptly investigate the conditions and If he/she finds that such conditions do materially differ, or do involve hazardous waste, and do cause an increase or decrease in the Contractor's cost of, or time required for, performance of any part of the Work under this Contract, an equitable adjustment will be made, as determined by the Director.
Change Order Request. If Contractor intends to seek an adjustment to the Contract Sum or Contract Time based upon Differing Site Conditions, it must, within ten (10) Days after the Discovery Date relative to such conditions, submit a Change Order Request setting forth a detailed cost breakdown and Time Impact Analysis, in the form required by Article 6 of these General Conditions, of the additional Allowable Costs and Excusable Delay resulting from such Differing Site Conditions.
E. Failure to Comply. Failure by Contractor to strictly comply with the requirements of this Paragraph
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10.03 concerning the timing and content of any notice of Differing Site Conditions or request for adjustment in Contract Sum or Contract Time based on Differing Site Conditions shall be deemed waiver of any right by the Contractor for an adjustment in the Contract Sum or Contract Time by reason of such conditions.
F. Final Completion. No claim by the Contractor for additional compensation for Differing Site Conditions shall be allowed if asserted after Final Payment.
G. In the event of disagreement between the Contractor and the Director whether the conditions do materially differ or whether a hazardous waste is involved or whether the conditions cause an increase or decrease in the Contractor's cost of, or time required for, performance of any part of the Work, the Contractor shall not be excused from any completion date required by the Contract, but shall proceed with all Work to be performed under the Contract Documents.
H.
I.
The Contractor shall retain all rights provided by, and shall be subject to all requirements of, this Contract which pertain to the resolution of disputes and protests.
Contractor Responsibility. Except as otherwise provided in this Paragraph 10.03 for Differing Site Conditions, Contractor agrees to solely bear the risk of additional cost and Delay due to concealed or unknown conditions, surface or subsurface, at the Site or in Existing Improvements, without adjustment to the Contract Sum or Contract Time.
10.04 TRAFFIC REGULATION
A. During the performance of the Work the Contractor shall erect and maintain necessary temporary fences, bridges, railings, lights, signals, barriers, or other safeguards as shall be appropriate under the circumstance in his/her judgment for the prevention of accidents; and he/she shall take other precautions as necessary for public safety including, but not limited to, traffic control. Traffic control shall be conducted in accordance with the latest edition of the California Manual on Uniform Traffic Control Devices (MUTCD), published by BNi Books, and as directed and approved by the City Engineer.
B.
C.
Contractor shall submit at least ten (10) Working Days prior to Work a detailed traffic control plan, that is approved by all agencies having jurisdiction and that conforms to all requirements of the Specifications.
No changes or deviations from the approved detailed traffic control plan shall be made, except temporary changes in emergency situations, without prior approval of the City Engineer and all agencies having jurisdiction.
Contractor shall immediately notify the Director, the City Engineer and the agencies having jurisdiction of occurrences that necessitate modification of the approved traffic control plan.
D. Contractor’s failure to comply with this provision may result in actions as provided in Article 5:
“Suspension or Termination of Contract” of these General Conditions.
10.05 TRAFFIC CONTROL DEVICES
A. Traffic signs, flashing lights, barricades and other traffic safety devices used to control traffic shall conform to the requirements of the California Manual on Uniform Traffic Control Devices (MUTCD)
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and as approved by the City Engineer.
1. Portable signals shall not be used unless permission is given in writing by the agency having jurisdiction.
2. Warning signs used for nighttime conditions shall be reflectorized or illuminated. "Reflectorized signs" shall have a reflectorized background and shall conform to the current State of California Department of Transportation specification for reflective sheeting on highway signs.
B. If the Contractor fails to provide and install any of the signs or traffic control devices required herby or ordered by the City staff, staff may cause such signs or traffic control devices to be placed by others, charge the costs therefore against the Contractor, and deduct the same from the next progress payment.
10.06 EXECUTION
A.
B.
C.
D.
The Contractor shall provide written notification to the Police Department, Traffic Bureau (323) 587- 5171, at least two (2) weeks prior to the beginning of construction at any particular location. Notification will include the specific location, project dates, what lanes of the roadway will be closed and when. Also the construction project manager’s name and business phone number and the construction inspector’s name and business phone number.
The Contractor shall notify, by telephone, the Police Department, (323) 587-5171 at the completion of any posting of temporary no parking signs. Notification will include the times, dates and locations of the posting. When vehicles must be towed for violation of temporary no parking signs, the person who actually posted the signs, or on-view supervisor of that posting, will be present to answer pertinent questions that may be asked by the parking enforcement officer or police officer towing the vehicles.
The Contractor shall notify the Fire Department, on a daily basis during the entire period that construction is in progress whenever roadways are reduced in width or blocked. Notification shall be made to the Fire Dispatch (323) 881-6183 and the Contractor shall provide the information required to identify which roadways would have accessibility problems due to his/her operations. The Contractor shall submit to Fire Department schedule of Work for their use and files.
Roads subject to interference from the Work covered by this Contract shall be kept open, and the fences subject to interference shall be kept up by the Contractor until the Work is finished. Except where public roads have been approved for closure, traffic shall be permitted to pass through designated traffic lanes with as little inconvenience and delay as possible.
E.
F.
G.
Where alternating one-way traffic has been authorized, the maximum time that traffic will be delayed shall be posted at each end of the one-way traffic section. The maximum delay time shall be approved by the agency having jurisdiction.
Contractor shall install temporary traffic markings where required to direct the flow of traffic and shall maintain the traffic markings for the duration of need. Contractor shall remove the markings by abrasive blasting when no longer required.
Convenient access to driveways and buildings in the vicinity of Work shall be maintained as much as possible. Temporary approaches to, and crossing of, intersecting traffic lanes shall be provided and
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kept in good condition.
H. When leaving a Work area and entering a roadway carrying public traffic, the Contractor's equipment, whether empty or loaded, shall in all cases yield to public traffic.
10.07 FLAGGING
A. Contractor shall provide flaggers to control traffic where required by the approved traffic control plan.
1. Flaggers shall perform their duties and shall be provided with the necessary equipment in accordance with the current "Instructions to Flaggers" of the State of California Department of Transportation.
2. Flaggers shall be employed full time on traffic control and shall have no other duties.
10.08 PEDESTRIAN CANOPIES OR BARRICADE IMPROVEMENTS
Refer to City of Vernon for requirements for building or access road safety improvements that the Contractor shall construct during construction period. These devices or improvements, as the City deems necessary or prudent, shall be at the expense of the Contractor.
[END OF ARTICLE]
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ARTICLE 11 - INDEMNITY
11.01 INDEMNITY
To the maximum extent permitted by law, the Contractor shall fully indemnify, hold harmless, protect, and defend the City, its officers, employees, agents, representatives and their successors and assigns (“Indemnitees”) from and against any and all demands, liability, loss, suit, claim, action, cause of action, damage, cost, judgment, settlement, decree, arbitration award, stop notice, penalty, loss of revenue, and expense (including any fees of accountants, attorneys, experts or other professionals, and costs of investigation, mediation, arbitration, litigation and appeal), in law or in equity, of every kind and nature whatsoever, arising out of or in connection with, resulting from or related to, or claimed to be arising out of the Work performed by Contractor, or any of its officers, agents, employees, Subcontractors, Sub-Subcontractors, design consultants or any person for whose acts any of them may be liable, regardless of whether such claim, suit or demand is caused, or alleged to be caused, in part, by an Indemnitee, including but not limited to:
A.
B.
Bodily injury, emotional injury, sickness or disease, or death to any persons; Infringement of any patent rights, licenses, copyrights or intellectual property which may be brought against the Contractor or City arising out of Contractor’s Work, for which the Contractor is responsible; C. Stop notices and claims for labor performed or materials used or furnished to be used in the Work, including all incidental or consequential damages resulting to City from such stop notices and claims; D.
E.
F.
Failure of Contractor or its Subcontractors to comply with the provisions for insurance; Failure to comply with any Governmental Approval or similar authorization or order; Misrepresentation, misstatement, or omission with respect to any statement made in or any document furnished by the Contractor in connection therewith;
G.
H.
I.
Breach of any duty, obligation, or requirement under the Contract Documents; Failure to provide notice to any Party as required under the Contract Documents; Failure to protect the property of any utility provider or adjacent property owner; or J. Failure to make payment of all employee benefits.
This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees, except that, to the limited extent mandated by California Civil Code Section 2782, the Contractor shall not be responsible for liabilities which arise from the sole negligence or willful misconduct of Indemnitees or arise from the active negligence of City.
11.02 ENFORCEMENT
Contractor’s obligations under this Article extend to claims occurring after termination of the Contractor’s performance of the Contract or Final Payment to Contractor. The obligations apply regardless of any actual or alleged negligent act or omission of Indemnitees. Contractor, however, shall not be obligated under this Agreement to indemnify an Indemnitee for claims arising from the sole active negligence or willful misconduct of the Indemnitee or independent contractors who are directly responsible to Indemnitees. Contractor’s obligations under this Article are in addition to any other rights or remedies which the Indemnitees may have under the law
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or under the Contract Documents. In the event of any claim, suit or demand made against any Indemnitees, the City may in its sole discretion reserve, retain or apply any monies due to the Contractor under the Contract for the purpose of resolving such claims; provided, however, that the City may release such funds if the Contractor provides the City with reasonable assurance of protection of the City’s interests. The City shall in its sole discretion determine whether such assurances are reasonable.
11.03 NO LIMITATIONS
Contractor’s indemnification and defense obligations set forth in this Article are separate and independent from the insurance provisions set forth in Article 12 herein; and do not limit, in any way, the applicability, scope, or obligations set forth in those insurance provisions. In claims, suits, or demands against any Indemnitee by an employee of the Contractor, a Subcontractor, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, the Contractor’s indemnification and defense obligations shall not be limited by a limitation on amount or type of damages, compensation, or benefits payable by or for the Contractor or a Subcontractor under workers’ compensation acts, disability benefits acts, or other employee benefits acts. [END OF ARTICLE]
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ARTICLE 12 – INSURANCE
12.01 CONDITION TO COMMENCEMENT
Contractor shall not commence Work under this Contract until Contractor has obtained all insurance required hereunder from a company or companies acceptable to City, nor shall the Contractor allow any Subcontractor to commence Work on a subcontract until all insurance required of said Subcontractor has been obtained. Proof of insurance including insurance certificates and endorsements as set forth in Exhibit 4 must be submitted by the Contractor prior to the City’s execution of the Contract.
12.02 MINIMUM COVERAGE AND LIMITS
Contractor shall maintain the insurance coverage as set forth in Exhibit 4 throughout the term of the Contract.
12.03 CONDITIONS REGARDING INSURANCE COVERAGE AND LIMITS City and Contractor agree as follows:
A. All insurance coverage and limits provided pursuant to the Contract Documents shall apply to the full extent of the policies involved, available or applicable. Nothing contained in the Contract Documents or any other agreement relating to City or its operations limits the application of such insurance coverage.
B. None of the policies required by this Contract shall be in compliance with these requirements if they include any limiting endorsement that has not been first submitted to City and approved in writing by the City’s Risk Manager.
12.04 INSURANCE OBLIGATION IS SEPARATE FROM INDEMNITY OBLIGATION This Agreement’s insurance provisions:
A.
B.
Are separate and independent from the indemnification and defense provisions in Article 12 of the Agreement; and
Do not limit, in any way, the applicability, scope, or obligations of the indemnification and defense provisions in Article 12 of the Agreement.
[END OF ARTICLE]
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ARTICLE 13 – BONDS
13.01 REQUIRED BONDS
A. Contractor shall furnish the following bonds:
1. A Performance Bond in an amount equal to one hundred percent (100%) of the total Contract price in the form shown in Exhibit "1" attached hereto.
2. A Payment Bond (Labor and Material) in an amount equal to one hundred percent (100%) of the total Contract price in the form shown in Exhibit "2" attached hereto.
3. A Maintenance Bond in an amount equal to ten percent (10%) of the total Contract price in the form shown in Exhibit "3" attached hereto.
13.02 POWER OF ATTORNEY
All bonds shall be accompanied by a power of attorney from the surety company authorizing the person executing the bond to sign on behalf of the company. If the bonds are executed outside the State of California, all copies of the bonds must be countersigned by a California representative of the surety. The signature of the person executing the bond on behalf of Surety shall be acknowledged by a Notary Public as the signature of the person designated in the power of attorney.
13.03 APPROVED SURETY
All bonds must be issued by a California admitted surety insurer with the minimum A.M Best Company Financial strength rating of “A: VII”, or better. Bonds issued by a California admitted surety not listed on Treasury Circular 570 will be deemed accepted unless specifically rejected by the City. Bonds issued from admitted surety insurers not listed in Treasury Circular 570 must be accompanied by all documents enumerated in California Code of Civil Procedure Section 995.660. All such bonds must be accompanied by a power of attorney from the surety company authorizing the person executing the bond to sign on behalf of the company. If the bonds are executed outside the State of California, all copies of the bonds must be countersigned by a California representative of the surety. The signature of the person executing the bond on behalf of Surety must be acknowledged by a Notary Public as the signature of the person designated in the power of attorney.
13.04 REQUIRED PROVISIONS
Every bond must display the surety’s bond number and incorporate the Contract for construction of the Work by reference. The terms of the bonds shall provide that the surety agrees that no change, extension of time, alteration, or modification of the Contract Documents or the Work to be performed thereunder shall in any way affect its obligations and shall waive notice of any such change, extension of time, alteration, or modification of the Contract Documents.
13.05 NEW OR ADDITIONAL SURETIES
If, during the continuance of the Contract, any of the sureties, in the opinion of the City, are or become nonresponsible or otherwise unacceptable to City, City may require other new or additional sureties, which the Contractor shall furnish to the satisfaction of City within ten (10) days after notice, and in default thereof the Contract may be suspended and the materials may be purchased or the Work completed as provided in Article 5 herein.
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13.06 WAIVER OF MODIFICATIONS AND ALTERATIONS
No modifications or alterations made in the Work to be performed under the Contract or the time of performance shall operate to release any surety from liability on any bond or bonds required to be given herein. Notice of such events shall be waived by the surety.
13.07 APPROVAL OF BONDS
The Contract will not be executed by City nor the Notice to Proceed issued until the required bonds have been received and approved by City. City's decision as to the acceptability of all sureties and bonds is final. No substitution of the form of the documents will be permitted without the prior written consent of City. [END OF ARTICLE]
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ARTICLE 14 - LABOR PROVISIONS
14.01 WORKING HOURS
A.
B.
C.
Work or activity of any kind shall be limited to the hours from 7:00 a.m. to 7:00 p.m. No construction noise shall be permitted between the hours of 7:00 p.m. and 7:00 a.m. of the next day.
Work in excess of eight (8) hours per day, on Saturdays, Sundays, or on City holidays requires prior consent of the Director and is subject to Cost of Overtime Construction Inspection.
Night, Sunday and Holiday Work. No Work shall be performed at night, Sunday, or the ten (10) legal holidays to wit: New Year’s Day, Martin Luther King, Jr. Day, President’s Day, Cesar Chavez Day, Memorial Day, Independence Day, Labor Day, Indigenous People’s Day, Veteran’s Day, Thanksgiving Day, Christmas Eve, Christmas Day and New Year’s Eve, except Work pertaining to the public safety or with the permission of the Director, and accordance with such regulations as he/she shall furnish in writing. Before performing any Work at said times, except Work pertaining to the public safety, the Contractor shall give written notice to the Director so that proper inspection may be provided. “Night” as used in this paragraph shall be deemed to include the hours from 7:00 P.M. to 7:00 A.M. of the next succeeding day.
14.02 COST OF OVERTIME CONSTRUCTION SERVICES AND INSPECTIONS A. Overtime construction Work performed at the option of, or for the convenience of, the Contractor will be inspected by the City at the expense of the Contractor. For any such overtime beyond the regular 8-hour day and for any time worked on Saturday, Sunday, or holidays the charges will be determined by the City, and submitted to the Contractor for payment.
B.
C.
Equipment, materials, or services provided by the City, in connection with Contractor-initiated overtime construction Work described in Paragraph 14.02(A), will also be at the expense of the Contractor. The charges will be determined by the City, and submitted to the Contractor for payment.
There will be no charges to the Contractor for the inspection of overtime Work ordered by the Director or required by the Contract Documents.
14.03 COMPLIANCE WITH STATE LABOR CODE
A. Contractor shall comply with the provisions of the Labor Code of the State of California and any amendments thereof.
1. The time of service of any worker employed upon the Work shall be limited and restricted to eight (8) hours during any one-calendar day, and 40 hours during any one-calendar week.
2. Work performed by employees of the Contractor in excess of eight (8) hours per day, and 40 hours during any one calendar week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day at not less than one and one-half times the basic rate of pay.
3. The Contractor and every Subcontractor shall keep an accurate record showing the name of and the actual hours worked each calendar day and each calendar week by each worker employed by him/her in connection with the Work; the record shall be kept open at all reasonable hours to the inspection of the City and to the Division of Labor Standards Enforcement of the State of California.
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4. In the event City deems Contractor is in violation of this Paragraph 14.03, the Contractor shall, as a penalty, forfeit Fifty Dollars ($50.00) for each worker employed in the execution of the Contract by the Contractor or by any Subcontractor for each calendar day for which the employee was underpaid in addition to an amount sufficient to recover underpaid wages. For each subsequent violation, a (one hundred dollar) $100 penalty shall apply for each underpaid employee for each pay period for which the employee was underpaid in addition to an amount sufficient to cover underpaid wages. This subparagraph is effective to the extent it does not directly conflict with the overtime penalty provision of California Labor Code Section 558. In the event of such conflict, the California Labor Code governs over this Paragraph 14.03(A)(4).
14.04 WAGE RATES
A. Prevailing Wages
1. Contractor shall comply with the general prevailing rates of per diem wages and the general prevailing rates for holiday and overtime Work in the locality in which the Work is to be performed, for each craft, classification, or type of worker needed to execute the Contract. The Director of the Department of Industrial Relations of the State of California (pursuant to California Labor Code) and the United States Secretary of Labor (pursuant to the Davis-Bacon Act) have determined the general prevailing rates of wages in the locality in which the Work is to be performed. The rates are available from the City at its Public Works Department, which shall be made available to any interested party upon request; or online at www.dir.ca.gov/DLSR/PWD/.
To the extent that there are any differences in the federal and state prevailing wage rates for similar classifications of labor, the Contractor and its Subcontractors shall pay the highest wage rate.
2. The Contractor shall post a copy of the general prevailing rate of per diem wages at the job site.
3. The Contractor and any Subcontractor under him/her shall pay not less than the specified prevailing rate of wages to all workers employed in the execution of the Contract.
4. The holidays upon which such rates shall be paid shall be all holidays recognized in the collective bargaining Contract applicable to the particular craft, classification, or type of worker employed on the project.
5. The Contractor shall, as a penalty to the State or the City, forfeit not more than Fifty Dollars ($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates for the Work or craft in which the worker is employed under the Contract by the Contractor or by any Subcontractor under him. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which such worker was paid less than the stipulated prevailing wage rate shall be paid to such worker by the Contractor.
6. The specified wage rates are minimum rates only and the City will not consider and shall not be liable for any claims for additional compensation made by the Contractor because of payment by him/her of any wage rate in excess of the general prevailing rates. All disputes in regard to the payment of wages in excess of those specified herein shall be adjusted by the Contractor at his/her own expense.
B. Payroll Records
1. Pursuant to California Labor Code Section 1776, the Contractor and each Subcontractor shall
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keep an accurate payroll record, showing the name, address, social security number, Work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed in connection with the Work. The payroll records shall be certified and shall be available for inspection.
2. The Contractor shall inform the City of the location of the payroll records, including the street address, city and county, and shall, within five (5) Working Days, provide a notice of change in location and address.
3. Upon request by the Director, the Contractor shall provide a copy of the certified payroll records along with a statement of compliance.
14.05 APPRENTICESHIP STANDARDS
A. Compliance with California Labor Code Section 1777.5 et seq. requires all public works contractors and subcontractors to:
1. 2.
Prior to commencing work on a public works contract, submit Contract Award information to the applicable joint apprenticeship committee, including an estimate of the journeyman hours to be performed under the Contract, the number of apprentices to be employed, and the approximate dates the apprentices will be employed. Use Form DAS-140 from the State Department of Industrial Relations. The City reserves the right to require Contractor and Subcontractors to submit a copy of said forms to the City.
Employ apprentices for the public work at a ratio of no less than one (1) hour or apprentice work for every five (5) hours or labor performed by a journeyman. To request dispatch of apprentices, use Form DAS-142 from the State Department of Industrial Relations. The City reserves the right to require Contractor and Subcontractors to submit a copy of said forms to the City.
3. 4.
Pay the apprentice rate on public works projects only to those apprentices who are registered, as defined in Labor Code Section 3077.
Contribute to the training fund in the amount identified in the Prevailing Wage Rate publication for journeyman and apprentices. Contractors who choose not to contribute to the local training trust fund must make their contributions to the California Apprenticeship Council, P.O. Box 420603, San Francisco, CA 94142.
B.
C.
California Labor Code Section 1777.7, subdivision (g), provides that the interpretation of Section 1777.5 shall be in accordance with the regulations of the California Apprenticeship Council, with which Contractor must also comply.
Failure to comply with the provisions of California Labor Code Section 1777.5 et seq. may result in the loss of the right to bid or perform work on all public works projects for a period of one to three years and the imposition of a civil penalty of One Hundred Dollars ($100.00) for each calendar day of noncompliance for the first violation and up to Three Hundred Dollars ($300.00) for each calendar day of noncompliance for a second or subsequent violation. Contractor should make a separate copy of this material for each of his/her Subcontractors.
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D.
E.
Payroll Records. The Contractor and each Subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman apprentice, worker or other employee employed in connection with the work. The payroll records shall be certified and shall be submitted to the Project Manager every two weeks.
Statement of Employer Fringe Benefit Payments. Within five (5) calendar days of signing the Contract or Subcontract, as applicable, the Statement of Employer Payments (DLSE Form PW 26 from the State Department of Industrial Relations) shall be completed for each Contractor and Subcontractor of any tier who pays benefits to a third party trust, plan or fund for health and welfare benefits, vacation funds or makes pension contributions. The form must contain, for each worker classification, the fund, plan or trust name, address, administrator, the amount per hour contributed and the frequency of contributions. Training fund contributions shall also be reported in this form.
City reserves the right to require Contractors and Subcontractors to submit a copy of said forms to the City.
14.06 EMPLOYMENT OF APPRENTICES
A. In the performance of this Contract, the Contractor and any Subcontractor shall comply with the provisions concerning the employment of apprentices in the Labor Code of the State of California and any amendments thereof, including but not limited to Labor Code Sections 1776, 1777.5, 1777.6 and 1777.7.
B. In the event the Contractor or any Subcontractor willfully fails to comply with the aforesaid provisions of the Labor Code, such Contractor or Subcontractor shall be subject to the penalties for noncompliance in the Labor Code of the State of California and any amendments thereof.
14.07 REGISTRATION WITH THE STATE DEPARTMENT OF INDUSTRIAL RELATIONS In the performance of this Contract, Contractor and/or any Subcontractor must be currently registered and qualified (including payment of any required fee) with the State Department of Industrial Relations pursuant to Labor Code section 1725.5. This project is subject to compliance monitoring and enforcement by the State Department of Industrial Relations.
14.08 CHARACTER OF WORKERS
The Contractor shall not allow his/her agents or employees, Subcontractors, or any agent or employee thereof, to trespass on premises or lands in the vicinity of the Work. Only skilled supervisors and workers shall be employed on Work requiring special qualifications, and when required by the Director, the Contractor shall discharge any person who commits trespass, or in the opinion of the Director, acts in a disorderly, dangerous, insubordinate, incompetent, or otherwise objectionable manner. Any employee being intoxicated or bringing or having intoxicating liquors or controlled substances on the Work shall be discharged. Such discharge shall not be the basis of any claim for compensation of damages against the City or any of its officers, agents, and employees.
14.09 NO SMOKING – STATE LABOR CODE SECTION 6404.5
The Contractor and its agents, employees, Subcontractors, representatives, and any person under Contractor’s control, are prohibited from smoking in— or within a 20-foot distance from— the Site, which is a "place of employment" under California Labor Code § 6404.5. [END OF ARTICLE]
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ARTICLE 15 - DISPUTE RESOLUTION
15.01 SUBMISSION OF CLAIMS
A. By Contractor
Contractor’s right to commence the Claims Dispute Resolution Process shall arise upon the Director’s written response denying all or part of a Claim. Contractor shall submit a written Statement of Dispute to the Director within seven (7) Days after the Director rejects all or a portion of Contractor’s Claim.
Contractor’s Statement of Dispute shall be signed under penalty of perjury and shall state with specificity the events or circumstances giving rise to the Claim, the dates of their occurrence and the effect, if any, on the compensation due or performance obligations of Contractor under the Construction Contract. Such Statement of Dispute shall include adequate supporting data to substantiate the disputed Claim. Adequate supporting data for a Claim relating to the adjustment of the Contractor’s obligations relative to time of performance shall include a detailed, event-by-event description of the impact of each delay on Contractor’s time for performance. Adequate supporting data to a Statement of Dispute submitted by Contractor involving Contractor’s compensation shall include a detailed cost breakdown and supporting cost data in such form and including such detailed information and other supporting data as required to demonstrate the grounds for, and precise amount of, the Claim.
B.
C.
By City
City’s right to commence the Claims Dispute Resolution Process shall arise at any time following the City’s actual discovery of the circumstances giving rise to the Claim. Nothing contained herein shall preclude City from asserting Claims in response to a Claim asserted by Contractor. A Statement of Dispute submitted by City shall state the events or circumstances giving rise to the Claim, the dates of their occurrence and the damages or other relief claimed by City as a result of such events.
Claims Defined
The term “claims” as used herein shall be as defined in California Public Contract Code § 9204(c)(1).
15.02 CLAIMS DISPUTE RESOLUTION PROCESS
The parties shall utilize each of the following steps in the Claims Dispute Resolution Process in the sequence they appear below. Each party shall participate fully and in good faith in each step in the Claims Dispute Resolution Process, which good faith effort shall be a condition precedent to the right of each party to proceed to the next step in the Claims Dispute Resolution Process.
A. Direct Negotiations
Designated representatives of City and Contractor shall meet as soon as possible (but not later than ten (10) Days after receipt of the Statement of Dispute) in a good faith effort to negotiate a resolution to the Claim. Each party shall be represented in such negotiations by an authorized representative with full knowledge of the details of the Claim or defenses being asserted by such party, and with full authority to resolve such Claim then and there, subject only to City’s right and obligation to obtain City Council [or other City official] approval of any agreed settlement or resolution. In the Claim involves the assertion of a right or claim by a Subcontractor against Contractor that is in turn being asserted by Contractor against City, then such Subcontractor shall also have a representative attend such negotiations, with the same authority and knowledge as just described. Upon completion of the
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meeting, if the Claim is not resolved, the parties may either continue the negotiations or either party may declare negotiations ended. All discussions that occur during such negotiations and all documents prepared solely for the purpose of such negotiations shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152.
B. Deferral of Claims
Following the completion of the negotiations required by Paragraph 15.02-A., all unresolved Claims, except those that do not involve parties other than the Contractor and City, shall be deferred pending Final Completion of the Work, subject to City’s right, in its sole and absolute discretion, to require that the claims Dispute Resolution Process proceed prior to Final Completion. In the event that City does not elect to proceed with the Claims Dispute Resolution Process prior to Final Completion of the Work, all Claims that have been deferred until such Final Completion shall be consolidated within a reasonable time after such Final Completion and thereafter pursued to resolution pursuant to the Claims Dispute Resolution Process. Nothing contained in this Article 15 shall be interpreted as limiting the parties’ rights to continue informal negotiations of Claims that have been deferred until such Final Completion; provided, however, that such informal negotiations shall not be interpreted as altering the provisions of this Article 15 deferring final determination and resolution of unresolved Claims until after Final Completion of the Work.
C. Required Provisions On Contract Claim Resolution Under California Law If a Claim is not resolved by the steps described in this Article 15(A) and 15(B), Public Contract Code Section 9204 specifies required provisions on resolving contract Claims of any size, and Public Contract Code Section 20104, et seq., specifies required provisions on resolving contract Claims less than $375,000. Those statutes constitute a part of this Contract. In the event any other Contract provision violates such statutes, the applicable statute controls. Public Contract Code Section 9204 provides: For the purposes of this section, “Claim” means a separate demand by Contractor for (1) a time extension, (2) payment or money or damages arising from Work done by or on behalf of Contractor arising under the contract documents and payment of which is not otherwise expressly provided for or the claimant is not otherwise entitled to, or (3) an amount the payment of which is disputed by the City.
Upon receipt of a Claim the City shall conduct a reasonable review of the Claim and within 45 days, or if the City’s governing body must approve the City’s response to the Claim and the governing body has not met within the 45 days, then within three (3) days of the Agency’s meeting, shall provide Contractor with a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Should the City take no action on the Claim within 45 days of submission, it shall be deemed denied.
If the Contractor disputes the City’s response to its Claim, including a failure to respond, it may submit via registered mail or certified mail, return receipt requested, a written demand for an informal conference to meet and confer for settlement of the issues in dispute. The City shall schedule such a meet and confer conference within 30 days for settlement of the dispute. Within ten (10) days of the meet and confer conference the City shall provide Contractor with a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. If the Contractor disputes the City’s statement, it shall inform the City and they shall mutually agree to a mediator within 10 business days of the written statement.
The City shall pay the undisputed portions of the Claim within 60 days of the issuance of a written
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statement identifying an undisputed portion.
Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to applicable procedures outside this section.
For Claims under $375,000, unless the parties agree otherwise in writing, mediation pursuant to these provisions shall excuse the mediation obligation under Public Contracting Code section 20104.4(a).
The parties may mutually agree, in writing, to waive the mediation requirements of this subsection and proceed to the commencement of a civil action.
Failure by the City to respond to a Claim from Contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City’s failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor.
Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
If a Subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a Subcontractor or lower tier subcontractor. A Subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the Subcontractor or by a lower tier subcontractor on behalf of the Subcontractor. The Subcontractor requesting that the Claim be presented to the public entity shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the Subcontractor in writing as to whether the Contractor presented the Claim to the City and, if the original Contractor did not present the Claim, provide the Subcontractor with a statement of the reasons for not having done so. Nothing in this section shall impose liability upon the City that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.
Public Contract Code Section 20104, et seq., provides: For the purposes of this section, “Claim” means a separate demand by Contractor of $375,000 or less for (1) a time extension, (2) payment or money or damages arising from Work done by or on behalf of Contractor arising under the Contract Documents and payment of which is not otherwise expressly provided for or the claimant is not otherwise entitled to, or (3) an amount the payment of which is disputed by the City. Claims that together total more than $375,000 do not qualify as a
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“separate demand of $375,000 or less,” and are not subject to this section.
A voucher, invoice, payment application, or other routine or authorized form of request for payment is not a Claim for purposes of this section. If such request is disputed as to liability or amount, then the disputed portion of the submission may be converted to a Claim under this section by submitting a separate Claim in compliance with Contract Documents Claim submission requirements.
Caution. This section does not apply to tort Claims, and nothing in this section is intended nor shall be construed to change the time periods for filing tort Claims or actions specified by Chapter 1 and Chapter 2 of Part 3 of Division 3.6 of Title 1 of the California Government Code.
The Claim must be in writing, submitted in compliance with all requirements of the Contract Documents.
For Claims of fifty thousand dollars ($50,000) or less, the City shall respond in writing within fortyfive (45) days of receipt of the Claim, or the City may request in writing within thirty (30) days of receipt of the Claim, any additional documentation supporting the Claim or relating to any defenses or Claims the City may have against claimant. If additional information is thereafter required, it shall be requested and provided in accordance with this section upon mutual agreement of the City and claimant. The City’s written response to the Claim, as further documented, shall be submitted to claimant within fifteen (15) days after receipt of further documentation or within a period of time no greater than taken by claimant in producing the additional information, whichever is greater. For Claims over Fifty Thousand Dollars ($50,000) and less than or equal to $375,000: the City shall respond in writing within sixty (60) days of receipt of the Claim, or the City may request in writing within thirty (30) days of receipt of the Claim, any additional documentation supporting the Claim or relating to any defenses or Claims the City may have against claimant. If additional information is thereafter required, it shall be requested and provided in accordance with this section, upon mutual agreement of the City and claimant; the City’s written response to the Claim, as further documented, shall be submitted to claimant within thirty (30) days after receipt of further documentation or within a period of time no greater than taken by claimant in producing the additional information, whichever is greater.
Meet and Confer: If claimant disputes the City’s written response, or the City fails to respond within the time prescribed above, claimant shall notify the City, in writing, either within fifteen (15) days of receipt of the City’s response or within fifteen (15) days of the City’s failure to timely respond, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon demand the City will schedule a meet and confer conference within thirty (30) days for settlement of the dispute.
Following the meet and confer conference described herein, if the Claim or any portion remains in dispute, claimant may file a Claim as provided in Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the California Government Code.
For purposes of those provisions, the running of the period of time within which a Claim must be filed shall be tolled from the time claimant submits its written Claim as set forth herein, until the time that Claim is denied as a result of the meet and confer process, including any period of time utilized by the meet and confer process.
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D. Legal Proceedings
If the Claim is not resolved by the procedures described in this Article 15 (A), 15 (B) and 15 (C) above, then the party wishing to further pursue resolution or determination of the Claim may submit the Claim for determination by commencing legal proceedings in a court of competent jurisdiction.
15.03 NO WAIVER
Participation in the Claims Dispute Resolution Process shall not constitute a waiver, release or compromise of any defense of either party, including, without limitation, any defense based on the assertion that the rights of Contractor that are the basis of a Claim were previously waived by Contractor due to failure to comply with the Contract Documents, including, without limitation, Contractor’s failure to comply with any time periods for providing notices or for submission or supporting documentation of Claims. [END OF ARTICLE]
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ARTICLE 16 - ACCOUNTING RECORDS
16.01 MAINTENANCE OF RECORDS
Contractor shall keep, and shall include in its contracts with its Subcontractors, provisions requiring its Subcontractors to keep full and detailed books and records in accordance with the requirements of the Contract Documents, including the following: all information, materials and data of every kind and character (hard copy, as well as computer readable data if it exists), that have any bearing on or pertain to any matters, rights, duties or obligations relating to the Project or the performance of the Work, including, without limitation, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, change orders, change order requests, estimates, field orders, schedules, diaries, logs, reports, shop drawings, samples, exemplars, Drawings, Specifications, invoices, delivery tickets, receipts, vouchers, cancelled checks, memoranda; accounting records; job cost reports; job cost files (including complete documentation covering negotiated settlements); backcharge; general ledgers; documentation of cash and trade discounts earned; insurance rebates and dividends, and other documents relating in way to Claims or Change Orders, Construction Change Directives, Work Directives, or other claims for payment related to the Project asserted by Contractor or any Subcontractor (“Accounting Records”). Contractor shall exercise such controls as may be necessary for proper financial management of the Work. Such accounting and control systems shall comply with prevailing custom and practice for similar projects, be satisfactory to City and shall include preservation of such records for a period of five (5) years after approval of the Notice of Completion and Acceptance by City, or for such longer period as may be required by applicable laws.
16.02 ACCESS TO RECORDS
Contractor shall allow, and shall include in its contracts with its Subcontractors provisions requiring its Subcontractors to allow, City and its authorized representative(s), auditors, attorneys and accountants, upon twenty-four (24) hours notice to Contractor, full access to inspect and copy all books and records relating to the Project that Contractor is required to maintain pursuant to Paragraph 16.01, above.
16.03 CONTRACTOR NONCOMPLIANCE, WITHHOLDING
Contractor's compliance with Paragraphs 16.01 and 16.02, above, shall be a condition precedent to maintenance of any legal action or arbitration by Contractor against City. In addition to and without limitation upon City's other rights and remedies for breach, including any other provisions for withholding set forth in the Contract Documents, City shall have the right, exercised in its sole discretion, to withhold from any payment to Contractor due under a current Application for Payment an additional sum of up to ten percent (10%) of the total amount set forth in such Application for Payment, until Contractor and its Subcontractors have complied with any outstanding and unsatisfied request by City under this Article 16. Upon such compliance with this Article 16, any additional monies withheld pursuant to this Paragraph 16.03 shall be released to Contractor.
16.04 SPECIFIC ENFORCEMENT BY CITY
Contractor agrees that any failure by Contractor or any Subcontractor to provide access to its books and records as required by this Article 16 shall be specifically enforceable, by issuance of a preliminary and/or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court and without the necessity of oral testimony, to compel Contractor to permit access, inspection, audits and/or reproduction of such books and records or to require delivery of such books and records to City for inspection, audit and/or reproduction.
[END OF ARTICLE]
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ARTICLE 17-MISCELLANEOUS PROVISIONS
17.01 COMPLIANCE WITH APPLICABLE LAWS
A. Notices, Compliance
Contractor shall give all notices required by governmental authorities and comply with all applicable laws and lawful orders of governmental authorities, including but not limited to the provisions of the California Code of Regulations applicable to contractors performing construction and all laws, ordinances, rules, regulations and lawful orders relating to safety, prevailing wage and equal employment opportunities.
B. Taxes, Employee Benefits
Contractor shall pay at its own expense, at no cost to the City and without adjustment to the Contract Sum, all local, state and federal taxes, including, without limitation all sales, consumer, business license, use and similar taxes on materials, labor or other items furnished for the Work or portions thereof provided by Contractor or Subcontractors, all taxes arising out of its operations under the Contract Documents and all benefits, insurance, taxes and contributions for social security and unemployment insurance which are measured by wages, salaries or other remuneration paid to Contractor's employees. If under federal excise tax law any transaction hereunder constitutes a sale on which a federal excise tax is imposed and the sale is exempt from such excise tax because it is a sale for its exclusive use, then City, upon request, will execute documents necessary to show that is a political subdivision of the State for the purposes of such exemption and that the sale is for the exclusive use of the City, in which case no excise tax for such materials shall be included in the Bid or Contract Sum.
C. Notice of Violations
Contractor shall immediately notify the City and Director in writing of any instruction received from the City, Director, Architect or other person or entity that, if implemented, would cause a violation of any applicable law or lawful order of a governmental authority. If Contractor fails to provide such notice, then Director shall be entitled to assume that such instruction is in compliance with applicable laws and lawful orders of governmental authorities. If Contractor observes that any portion of the Drawings and Specifications or Work are at variance with applicable laws or lawful orders of governmental authorities, or should Contractor become aware of conditions not covered by the Contract Documents which will result in Work being at variance therewith, Contractor shall promptly notify Director in writing. If, without such notice to Director, Contractor or any Subcontractor performs any Work which it knew, or through the exercise of reasonable care should have known, was contrary to lawful orders of governmental authorities or applicable laws, then Contractor shall bear all resulting losses at its own expense, at no cost to City and without adjustment to the Contract Sum.
17.02 OWNERSHIP OF DESIGN DOCUMENTS
A. Property of City
All Design Documents, Contract Documents and Submittals (including, without limitation, all copies thereof) and all designs and building designs depicted therein are and shall remain the sole and exclusive property of the City and the City shall solely and exclusively hold all copyrights thereto.
Without derogation the City’s rights under this Paragraph, the Contractor and Subcontractors are
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granted a limited, non-exclusive license, revocable at will of City, to use and reproduce applicable portions of the Contract Documents and Submittals as appropriate to and for use in the execution of the Work and for no other purpose.
B.
C.
Documents on Site
Contractor shall keep on the Project site, at all times and for use by City, Director, Inspectors of Record and City’s Consultants, a complete set of the Contract Documents that have been approved by applicable Governmental Authorities.
Delivery to City
All Design Documents, Contract Documents and Submittals in the possession of Contractor or Subcontractors shall be returned to the City upon the earlier of Final Completion or termination of the Construction Contract; provided, however, that Contractor and each Subcontractor shall have the right to retain one (1) copy of the Contract Documents and Submittals for its permanent records.
D. Subcontractors
Contractor shall take all necessary steps to assure that a provision is included in all subcontracts with Subcontractors, of every tier, who perform Work on the Project establishing, protecting and preserving the, City’s rights set forth in this Paragraph.
17.03 AMENDMENTS
The Contract Documents may be amended only by a written instrument duly executed by the parties or their respective successors or assigns.
17.04 WAIVER
Either party's waiver of any breach or failure to enforce any of the terms, covenants, conditions or other provisions of the Contract Documents at any time shall not in any way limit or waive that party's right thereafter to enforce or compel strict compliance with every term, covenant, condition or other provision, any course of dealing or custom of the trade notwithstanding. Furthermore, if the parties make and implement any interpretation of the Contract Documents without documenting such interpretation by an instrument in writing signed by both parties, such interpretation and implementation thereof will not be binding in the event of any future disputes.
17.05 INDEPENDENT CONTRACTOR
Contractor is an independent contractor, and nothing contained in the Contract Documents shall be construed as constituting any relationship with City other than that of Project owner and independent contractor. In no event shall the relationship between City and Contractor be construed as creating any relationship whatsoever between City and Contractor's employees. Neither Contractor nor any of its employees is or shall be deemed to be an employee of City. Except as otherwise specified in the Contract Documents, Contractor has sole authority and responsibility to employ, discharge and otherwise control its employees and has complete and sole responsibility as a principal for its agents, for all Subcontractors and for all other Persons that Contractor or any Subcontractor hires to perform or assist in performing the Work.
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17.06 SUCCESSORS AND ASSIGNS
The Contract Documents shall be binding upon and inure to the benefit of City and Contractor and their permitted successors, assigns and legal representatives.
A.
B.
City may assign all or part of its right, title and interest in and to any Contract Documents, including rights with respect to the Payment and Performance Bonds, to (a) any other governmental person as permitted by governmental rules, provided that the successor or assignee has assumed all of City's obligations, duties and liabilities under the Contract Document then in effect; and (b) any other Person with the prior written approval of Contractor.
Contractor may collaterally assign its rights to receive payment under the Contract Documents.
Contractor may not delegate any of its duties hereunder, except to Subcontractors as expressly otherwise permitted in the Contract Documents. Contractor's assignment or delegation of any of its Work under the Contract Documents shall be ineffective to relieve Contractor of its responsibility for the Work assigned or delegated, unless City, in its sole discretion, has approved such relief from responsibility.
Any assignment of money shall be subject to all proper set-offs and withholdings in favor of City and to all deductions provided for in the Contract. All money withheld, whether assigned or not, shall be subject to being used by City for completion of the Work, should Contractor be in default.
C. Except for the limited circumstances set forth in Paragraph 17.06-B, above, Contractor may not, without the prior written consent of City in its sole discretion, voluntarily or involuntarily assign, convey, transfer, pledge, mortgage or otherwise encumber its rights or interests under the Contract Documents. No partner, joint venturer, member or shareholder of Contractor may assign, convey, transfer, pledge, mortgage or otherwise encumber its ownership interest in Contractor without the prior written consent of City, in City’s sole discretion.
17.07 SURVIVAL
Contractor’s representations and warranties, the dispute resolution provisions contained in Article 15, and all other provisions which by their inherent character should survive termination of the Contract and/or Final Acceptance, shall survive the termination of the Contract and the Final Acceptance Date.
17.08 LIMITATION ON THIRD PARTY BENEFICIARIES
It is not intended by any of the provisions of the Contract Documents to create any third party beneficiary hereunder or to authorize anyone not a party hereto to maintain a suit for personal injury or property damage pursuant to the terms or provisions hereof, except to the extent that specific provisions (such as the warranty and indemnity provisions) identify third parties and state that they are entitled to benefits hereunder. The duties, obligations and responsibilities of the parties to the Contract Documents with respect to such third parties shall remain as imposed by law. The Contract Documents shall not be construed to create a contractual relationship of any kind between City and a Subcontractor or any other Person except Contractor.
17.09 PERSONAL LIABILITY OF CITY EMPLOYEES
City’s authorized representatives are acting solely as agents and representatives of City when carrying out the provisions of or exercising the power or authority granted to them under the Contract. They shall not be liable either personally or as employees of City for actions in their ordinary course of employment.
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No agent, consultant, Council member, officer or authorized employee of City, shall be personally responsible for any liability arising under the Contract.
17.10 NO ESTOPPEL
City shall not, nor shall any officer thereof, be precluded or estopped by any measurement, estimate or certificate made or given by the City representative or other officer, agent, or employee of City under any provisions of the Contract from at any time (either before or after the final completion and acceptance of the Work and payment therefor) pursuant to any such measurement, estimate or certificate showing the true and correct amount and character of the work done, and materials furnished by Contractor or any person under the Contract or from showing at any time that any such measurement, estimate or certificate is untrue and incorrect, or improperly made in any particular, or that the work and materials, or any part thereof, do not in fact conform to the Contract Documents. Notwithstanding any such measurement, estimate or certificate, or payment made in accordance therewith, City shall not be precluded or estopped from recovering from Contractor and its Sureties such damages as City may sustain by reason of Contractor’s failure to comply or to have complied with the Contract Documents.
17.11 GOVERNING LAW
The laws of the State of California govern the construction and interpretation of the Contract Documents, without regard to conflict of law principles. Unless the Contract Documents provide otherwise, any reference to laws, ordinances, rules, or regulations include their later amendment, modifications, and successor legislation. If Contractor or City brings a lawsuit to enforce or interpret one or more provisions of the Contract Documents, jurisdiction is in the Superior Court of the County of Los Angeles, California, or where otherwise appropriate, in the United States District Court, Central District of California. Contractor and City acknowledge that the Contract Documents were negotiated, entered into, and executed—and the Work was performed—in the City of Vernon, California.
17.12 FURTHER ASSURANCES
Contractor shall promptly execute and deliver to City all such instruments and other documents and assurances as are reasonably requested by City to further evidence the obligations of Contractor hereunder, including assurances regarding assignments of Subcontractors contained herein.
17.13 SEVERABILITY
If any clause, provision, section, paragraph or part of the Contract is ruled invalid by a court having proper jurisdiction, then the parties shall: (a) promptly meet and negotiate a substitute for such clause, provision, section, paragraph or part, which shall, to the greatest extent legally permissible, effect the original intent of the parties, including an equitable adjustment to the Contract Price to account for any change in the Work resulting from such invalidated portion; and (b) if necessary or desirable, apply to the court or other decision maker (as applicable) which declared such invalidity for an interpretation of the invalidated portion to guide the negotiations. The invalidity or unenforceability of any such clause, provision, section, paragraph or part shall not affect the validity or enforceability of the balance of the Contract, which shall be construed and enforced as if the Contract did not contain such invalid or unenforceable clause, provision, section, paragraph or part.
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17.14 HEADINGS
The captions of the sections of the Contract are for convenience only and shall not be deemed part of the Contract or considered in construing the Contract.
17.15 ENTIRE AGREEMENT
The Contract Documents contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, statements, representations and negotiations between the parties with respect to its subject matter.
17.16 COUNTERPARTS
This instrument may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. [END OF ARTICLE]
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EXHIBIT 4
INSURANCE REQUIREMENTS
1.0 REQUIRED INSURANCE POLICIES
At its own expense, Contractor shall obtain, pay for, and maintain – and shall require each of its Subcontractors to obtain and maintain – for the duration of the Agreement, policies of insurance meeting the following requirements:
A. Workers’ Compensation/Employer’s Liability Insurance shall provide workers’ compensation statutory benefits as required by law. The policy shall be endorsed to waiver all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract.
1. Employer’s Liability insurance shall be in an amount not less than:
(a)
(b)
ONE MILLION DOLLARS ($1,000,000) per accident for bodily injury or disease; ONE MILLION DOLLARS ($1,000,000) per employee for bodily injury or disease; and
(c) ONE MILLION DOLLARS ($1,000,000) policy limit.
B. Commercial General Liability (“CGL”) (primary). City and its employees and agents shall be added as additional insureds, not limiting coverage for the additional insured to “ongoing operations” or in any way excluding coverage for completed operations. Coverage shall apply on a primary, non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee, representative or agent of City.
Coverage shall not be limited to the vicarious liability or supervisory role of any additional insured. Coverage shall contain no contractors’ limitation or other endorsement limiting the scope of coverage for liability arising from explosion, collapse, or underground property damage.
1. CGL insurance must not be written for less than the limits of liability specified as follows:
(a) ONE MILLION DOLLARS ($1,000,000) per occurrence for bodily injury (including accidental death) to any one person;
(b) ONE MILLION DOLLARS ($1,000,000) per occurrence for personal and advertising injury to any one person;
(c)
(d)
ONE MILLION DOLLARS ($1,000,000) per occurrence for property damage; and TWO MILLION DOLLARS ($2,000,000) general aggregate limit.
2. CGL insurance must include all major divisions of coverage and must cover:
(a) Premises Operations (including Explosion, Collapse, and Underground [“X,C,U”] coverages as applicable);
(b) Independent Contractor’s Protective;
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(c) Independent Contractors;
(d) Products and Completed Operations (maintain same limits as above until five (5) years after recordation of Notice of Completion);
(e)
(f)
Personal and Advertising Injury (with Employer’s Liability Exclusion deleted); Contractual Liability (including specified provision for Contractor’s obligation under Article 11 of the General Conditions); and
(g) Broad Form Property Damage.
3. Umbrella or Excess Liability Insurance (over primary), if provided, shall be at least as broad as any underlying coverage. Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in addition to policy limits. There shall be no cross liability exclusion and no contractor’s limitation endorsement. The policy shall have starting and ending dates concurrent with the underlying coverages. The Named Insured may determine the layering of primary and excess liability insurance provided that if such layering differs from that described here, the actual coverage program meets the minimum total required limits and complies with all other requirements listed here. The coverage shall also apply to automobile liability.
C. Business Automobile Liability Insurance
1. Business Automobile Liability Insurance must cover all vehicles, whether rented, leased, hired, scheduled, owned or non-owned. If Contractor does not own any vehicles, this requirement may be satisfied by a non-owned vehicle endorsement to the general and umbrella liability policies. Business Automobile Liability Insurance coverage amounts shall not be less than the following:
(a) ONE MILLION DOLLARS ($1,000,000) per occurrence for bodily injury (including accidental death) to any one person; and
(b)
(c)
ONE MILLION DOLLARS ($1,000,000) per occurrence for property damage; or ONE MILLION DOLLARS ($1,000,000) combined single limit.
D. Contractors Pollution Liability Insurance (CPL)
1. Contractor or Subcontractor shall obtain, pay for, and maintain for the duration of the Contract Contractors Pollution Liability insurance that provides coverage for liability caused by pollution conditions arising out of the operations of the Contractor. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using Subcontractors, the policy must include work performed “by or on behalf” of the insured.
2. The policy limit shall provide coverage of no less than one million dollars ($1,000,000) per claim and in the aggregate. Coverage shall apply to bodily injury; property damage, including loss of use of damaged property or of property that has not been physically inured; cleanup costs; and costs of defense, including costs and expenses incurred in the
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investigation, defense, or settlement of claims.
3. All activities contemplated in the Contract shall be specifically scheduled on the CPL policy as “covered operations.” In addition, the policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites.
4. The policy shall specifically provide for a duty to defend on the part of the insurer. City, its officers, employees and agents shall be added to the policy as additional insureds by endorsement.
E. Builder’s Risk Insurance
1. Builder’s Risk Insurance covering all real and personal property for “all risks” of loss or “comprehensive perils” coverage including but not limited to the perils of earth movement including earthquake and flood for all buildings, structures, fixtures, materials, supplies, machinery and equipment to be used in or incidental to the construction at the site, off site, or in transit, for the full replacement value of such properties. Coverage shall be included for property of others in the care, custody or control of the insured for which any insured may be liable. The City will purchase a builder’s risk policy for the Project instead of a contractor purchased policy. Bidder should not include cost for this coverage in his/her bid.
F. If Contractor maintains broader coverage and/or higher limits than the minimums shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor.
Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
2.0 GENERAL REQUIREMENTS—ALL POLICIES
A. Qualifications of Insurer. At all times during the term of this Contract, Contractor’s insurance company must meet all of the following requirements:
1. “Admitted” insurer by the State of California Department of Insurance or be listed on the California Department of Insurance’s “List of Surplus Line Insurers” (“LESLI”), or nonadmitted insurer approved by the City.
2. 3.
Domiciled within, and organized under the laws of, a State of the United States; and Carry an A.M. Best & Company minimum rating of “A:VII”.
B. Continuation Coverage. For insurance coverages that are required to remain in force after the Final Payment, and if reasonably available, Contractor shall submit to City, with the final Application for Payment, all certificates and additional insured endorsements evidencing the continuation of such coverage.
C. Deductibles or Self-Insured Retentions. All deductibles or self-insured retentions are subject to City’s review and approval, in its sole discretion.
D. Commercial General Liability and Business Automobile insurance policies must be written on an “occurrence” basis and must add the City of Vernon and its officers, agents, employees and representatives as additional insureds.
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E. Contractor’s Insurance Primary. Other insurance (whether primary, excess, contingent or selfinsurance, or any other basis) available to City, or its representatives, or both, is excess over Contractor’s insurance.
City’s insurance, or self-insurance, or both, will not contribute with Contractor’s insurance policy.
F. Waiver of Subrogation Endorsement. Contractor and Contractor’s insurance company waive— and shall not exercise— any right of recovery or subrogation that Contractor or the insurer may have against City, or its representatives, or both.
G. Separation of Insureds. Contractor’s insurance policy applies separately to each insured or additional insured who is seeking coverage, or against whom a claim is made or suit is brought, except that the naming of multiple insureds will not increase an insurance company’s limits of liability.
H. Claims by Other Insureds. Contractor’s insurance policy applies to a claim or suit brought by an additional insured against a Named Insured or other insured, arising out of bodily injury, personal injury, advertising injury, or property damage.
I. Premiums. City is not liable for a premium payment or another expense under Contractor’s policy J. At any time during the duration of this Contract, City may do any one or more of the following:
1. 2.
Review this Agreement’s insurance coverage requirements; Require that Contractor obtain, pay for, and maintain more insurance depending on City’s assessment of any one or more of the following factors:
(a) City’s risk of liability or exposure arising out of, or in any way connected with, the services of Contractor under this Agreement;
(b) The nature or number of accidents, claims, or lawsuits arising out of, or in any way connected with, the services of Contractor under this Agreement; or (c) The availability, or affordability, or both, of increased liability insurance coverage.
3. Require the Contractor to obtain, pay for, or maintain a bond (as a replacement for an insurance coverage) from a California corporate surety, guaranteeing payment to City for liability, or costs, or both, that City incurs during City’s investigation, administration, or defense of a claim or a suit arising out of this Agreement; or K. Contractor shall maintain the insurance policy without interruption, from the Project’s commencement date to the Final Payment date, or until a date that City specifies for any coverage that Contractor must maintain after the Final Payment.
L. Contractor shall not allow any insurance to expire, cancel, terminate, lapse, or non-renew.
Contractor’s insurance company shall mail City written notice at least thirty (30) days in advance of the policy’s cancellation, termination, non-renewal, or reduction in coverage and ten (10) days before its insurance policy’s expiration, cancellation, termination, or non-renewal, Contractor shall deliver to City evidence of the required coverage as proof that Contractor’s insurance policy has been renewed or replaced with another insurance policy which, during the duration of this Agreement, meets all of this Agreement’s insurance requirements.
M. At any time, upon City’s request, Contractor shall furnish satisfactory proof of each type of insurance coverage required— including a certified copy of the insurance policy or policies; certificates, endorsements,
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renewals, or replacements; and documents comprising Contractor’s self-insurance program— all in a form and content acceptable to the City Attorney or City’s Risk Manager.
N. If Contractor hires, employs, or uses one or more Subcontractor(s) to perform work, services, operations, or activities on Contractor’s behalf, Contractor shall ensure that the Subcontractor complies with the following.
1. 2.
Meets, and fully complies with, this Agreement’s insurance requirements; and Furnishes City at any time upon its request, with a complete copy of the Subcontractor’s insurance policy or policies for City’s review, or approval, or both. Failure of City to request copies of such documents shall not impose any liability on City, or its employees.
O. Contractor’s failure to comply with an insurance provision in this Agreement constitutes a material breach upon which City may immediately terminate or suspend Contractor’s performance of this Agreement, or invoke another remedy that this Agreement or the law allows. At its discretion and without waiving any other rights it may have pursuant to law, City has the right but not a duty to obtain or renew the insurance and pay all or part of the premiums. Upon demand, Contractor shall repay City for all sums or monies that City paid to obtain, renew, or reinstate the insurance, or City may offset the cost of the premium against any sums or monies that City may owe Contractor.
3.0 CONTRACTOR’S SUBMITTAL OF CERTIFICATES AND ENDORSEMENTS A. Contractor shall have its insurance carrier(s) or self-insurance administrator(s) complete and execute the following insurance documents and shall deliver said documents at the same time Contractor delivers this Agreement to City. City will neither sign this Agreement nor issue a “Notice to Proceed” until the City Attorney or City’s Risk Manager has reviewed and approved all insurance documents. City's decision as to the acceptability of all insurance documents is final. Sample insurance documents in the City’s approved format are set forth in Exhibit 4.
B. Required Submittals for Commercial General Liability and Business Automobile Insurance and Contractor’s Pollution Liability Insurance. The following submittals must be on forms satisfactory to the City Attorney or City’s Risk Manager, and signed by the insurance carrier or its authorized representative – which fully meet the requirements of, and contain provisions entirely consistent with, all of the insurance requirements set forth herein.
1. 2.
3. “Certificate of Insurance”
“Additional Insured Endorsement”
Waiver of Subrogation Endorsement: “Waiver of Transfer to Rights of Recover Against Others” Both Certificates of Insurance and Additional Insured Endorsements must read as follows: “The City of Vernon, and its officers, agents, employees and representatives are included as additional insureds under the policy(s). This insurance is primary to all other insurance of the City. The City’s insurance and self-insurance will apply in excess of, and will not contribute with this insurance. This insurance applies separately to each insured or additional insured who is seeking coverage, or against whom a claim is made or a suit is brought. The issuing company shall mail thirty (30) days advance notice to the City for any policy cancellation, termination, non-renewal, or reduction in coverage.” C. Required Submittals for Workers’ Compensation Insurance. Contractor shall provide City with a certificate of insurance and a subrogation endorsement on forms satisfactory to the City Attorney or City’s Risk Manager, and signed by the insurance carrier or its authorized representative – which fully meet the requirements of, and contain provisions entirely consistent with, this Contract’s workers compensation insurance requirements. If Contractor is self-insured for workers’ compensation, a copy of the “Certificate of Consent to Self-insure” from the State of California is required; or if Contractor is lawfully exempt from workers’ compensation laws, an “Affirmation of Exemption from Labor Code §3700” form is required.
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D. Required Evidence of Builder’s Risk Coverage. Contractor will provide a certificate of insurance and a declarations page on a form satisfactory to the City Attorney or City’s Risk Manager, and signed by the insurance carrier or its authorized representative. The policy terms must fully meet the requirements of, and contain provisions entirely consistent with, all of the insurance requirements set forth herein. The City shall be named as a loss payee on the insurance policy for the full replacement value of all buildings, structures, fixtures and materials to be constructed, maintained, repaired or supplied pursuant to this Contract.
E. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that all required coverage is provided. Contractor agrees to obtain certificates evidencing such coverage.
F. Contractor agrees to provide immediate notice to City of any claim or loss against Contractor that includes City or any other indemnitee as a defendant. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.
G. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
H. Any “self-insured retention” must be declared and approved by City. City reserves the right to require the self-insured retention to be eliminated or replaced by a deductible as approved by the City. Self-funding, policy fronting or other mechanisms to avoid risk transfer are not acceptable. If Contractor has such a program, Contractor must fully disclose such program to City.
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EXHIBIT B
SPECIAL PROVISIONS
SPECIFIC FOR THIS PROJECT
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EXHIBIT B – SPECIAL PROVISIONS
SPECIFIC FOR THIS PROJECT
Citywide Traffic Signal Maintenance &
Repair FY2024
Contract No. 20240283
EXHIBIT B – SPECIAL PROVISIONS
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Table of Contents
A. General..................................................................................................................................................4
1. 2.
3. 4.
5. 6.
7. 8.
9. Scope of Work..................................................................................................................................4 Contract Specifications ....................................................................................................................4 Specifications ...................................................................................................................................4 Length of Contract ...........................................................................................................................4 Liquidated Damages.........................................................................................................................4 Delays and Extensions of time.........................................................................................................4 Quality of Work................................................................................................................................5 Unit Prices........................................................................................................................................5 Extra Work .......................................................................................................................................5
10. Compliance with Laws, Regulations, and Safe Practices .................................................................5 B. Construction Specifications ..................................................................................................................6
1. 2.
3. 4.
5. 6.
7. 8.
9. Scheduling of Work..........................................................................................................................6 Construction Hours..........................................................................................................................6 Traffic Requirements .......................................................................................................................6 Notification of Utilities.....................................................................................................................8 Protection of the Public ...................................................................................................................8 Noise Restrictions ............................................................................................................................8 Construction Order of Work ............................................................................................................8 Character of Workers.......................................................................................................................9 Examination of Site ..........................................................................................................................9
10. Mobilization .....................................................................................................................................9
11. Dust Control.....................................................................................................................................9
12. Best Management Practices (BMP’s)...............................................................................................9
13. Temporary Water Meter................................................................................................................10
14. Cleaning of Site During Construction.............................................................................................10
15. Parkway Restoration......................................................................................................................10
16. Final Cleaning of Site and Restoration...........................................................................................10
17. Contractor Responsibility...............................................................................................................10 C. Routine Maintenance .........................................................................................................................11
1. 2.
Monthly and Annual Preventative Maintenance...........................................................................11 Traffic Signal Control Equipment ...................................................................................................11 EXHIBIT B – SPECIAL PROVISIONS
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3. New Installation or Deletions ........................................................................................................12 D. Extraordinary Maintenance ................................................................................................................12
1. 2.
3. 4.
5. 6.
Definitions......................................................................................................................................12 Notification ....................................................................................................................................12 Emergencies...................................................................................................................................12 Method of Payment.......................................................................................................................13 Rewire ............................................................................................................................................14 Knockdowns...................................................................................................................................14 E. Miscellaneous .....................................................................................................................................14
1. 2.
3. 4.
5. 6.
Records ..........................................................................................................................................14 Notification ....................................................................................................................................14 Shutdowns .....................................................................................................................................14 Compensation for Routine Maintenance ...................................................................................... 15 Types of Signals..............................................................................................................................15 Traffic Detector Loops....................................................................................................................15 EXHIBIT B – SPECIAL PROVISIONS
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A. General
1. Scope of Work
This project consists of ongoing and regular field preventative maintenance and repair of traffic signal equipment, as further described in these special provisions and Attachment “C” - Monthly Preventative Maintenance Tasks, and other related equipment by truly trained and qualified personnel. In addition, the Contractor shall provide and maintain Emergency Service response of the City’s forty-two (42) signalized intersections on a 24-hour a day, 7 days per week basis, including all holidays.
2. Contract Specifications
The location map is shown on Attachment “A”. The written list of locations for the 42 signalized intersections are shown on Attachment “B”. The list of the monthly preventative maintenance tasks are shown on Attachment “C”.
3. Specifications
Installation and payment for all the work shall conform to the Standard Specifications for Public Works Construction (2021 Edition), State of California Department of Transportation “Caltrans” Standard Plans (2022 Edition) and State of California Department of Transportation Standard Specifications (2018 Edition), latest edition of the California Manual on Uniform Traffic Control Devices, and the City of Vernon Standard Plans.
The Standard Specifications for Public Works Construction (2021 Edition) shall be referred to hereafter as the “Standard Specifications”. The Caltrans Standard Plans (2022 Edition) shall be referred to hereafter as the “Caltrans Standard Plans”.
4. Length of Contract
The term of the contract shall not exceed three (3) years pursuant to the Vernon Municipal Code beginning upon City Council approval.
5. Liquidated Damages
As stated in Section 3.07 in Exhibit A – General Conditions, the Contractor shall pay the sum of $500.00 for each day past the first and last seven (7) working days of each month for noncompletion of the Routine Maintenance-Inspection and Cleaning work. Contractor shall pay to the City, or have withheld from monies due it, the sum of $200.00 for each hour late when responding to emergency situations.
6. Delays and Extensions of time
The provisions of Section 6-4 entitled "Delays and Extensions of Time" of the Standard Specifications shall apply except as modified and supplemented below.
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The second paragraph of subsection 6-4.1 is hereby deleted and the following paragraph shall be inserted in its place:
No extension of time will be granted for a delay caused by the inability of the Contractor to obtain materials, equipment and labor, except as authorized by the City's Project Manager. The length of contract time stipulated includes any time which may be required to obtain materials, equipment and labor, and the Contractor in submitting a bid shall be deemed to have ascertained the availability of materials, equipment and labor and considered same in his/her proposed construction schedule.
7. Quality of Work
The provisions of Section 3 entitled "Control of the Work" of the Standard Specifications shall apply. In addition, any work deemed unacceptable by the City's Project Manager, whether a cause is determined or not shall be repaired or replaced by the Contractor at his/her expense.
8. Unit Prices
All costs not covered by specific unit prices but required for a complete job in place, shall be included in the items most related to the work.
9. Extra Work
In the event the City and the Contractor are unable to negotiate an agreed price for extra work, which is acceptable to both parties, payment shall be made based on time and materials as follows: Work by the Contractor: The following percentages shall be added to the Contractor's cost and shall constitute the markup for all overhead and profits:
1. 2.
3. 4.
Labor 33%
15%
15%
15%
Materials
Equipment Rental
Other Items and Expenditures
Work by the Subcontractor: When all or any part of the extra work is performed by a subcontractor, the markup provided by the Contractor as mentioned above shall apply to the subcontractor’s actual costs. A markup of 5% of the subcontracted portion of each extra work may be added for the Contractor.
10. Compliance with Laws, Regulations, and Safe Practices The Contractor shall perform all work in a safe, competent manner and in accordance with all federal, state, and local statues, regulations, ordinances, rules, and governmental orders. The Contractor will be solely and completely responsible for the conditions of the job site, including safety of all persons and property during performance of the work. This requirement will apply EXHIBIT B – SPECIAL PROVISIONS
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continuously and not be limited to normal working hours. Inspection of the Contractor's performance by the City, its agents, or employees is not intended to include review of the adequacy of the Contractor's safety measures in or near the job site.
B. Construction Specifications
1. Scheduling of Work
The Contractor shall submit his/her preventative maintenance work schedule to the City's Project Manager prior to the pre-construction meeting. This schedule must be reviewed and accepted by the City's Project Manager before the Contractor will be permitted to begin work. The Contractor shall give 24 hours’ notice to the City's Project Manager prior to the start of the work.
2. Construction Hours
All preventative work shall occur Monday-Friday between the hours of 7:00 am to 4:00 pm, excluding emergency work.
Contractor shall perform Monthly Maintenance-Inspection and Cleaning work to half of the signalized intersection listed in Attachment “B” and shown in Attachment “A” during the first seven (7) working days of each month and the other half shall be performed during the last seven (7) working days of each month unless otherwise approved by the City's Project Manager.
3. Traffic Requirements
Before any partial or total closure of any street, the Contractor shall be required to obtain the approval of the City's Project Manager.
The Contractor shall comply with Section 600 and 601 of the Standard Specifications and provide safe and continuous passage for pedestrian and vehicular traffic at all times. The Contractor shall provide and maintain all necessary flagmen, barricades, delineators, signs, flashers and any other safety equipment as set forth in the latest publication of the State of California, Division of Highways, Traffic Manual or as required by the City's Project Manager to ensure safe passage of traffic.
The following provisions shall apply unless otherwise directed by the City's Project Manager. The traffic control shall be in accordance with the California Manual of Temporary Traffic Controls (CA MUTCD, latest edition) handbook.
Except for emergency work, the Contractor shall submit detour plans to the City's Project Manager for approval at least ten (10) calendar days prior to any proposed shutdowns where traffic flow has to be diverted. This will not apply to emergency responses.
The Contractor shall submit traffic channelization and detour plans to the City's Project Manager for approval at least fourteen (14) fourteen working days prior to commencement of work. Traffic control plans (previously approved by the City's Project EXHIBIT B – SPECIAL PROVISIONS
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Manager) shall be maintained within the construction zone for the duration of the construction.
Traffic Control Work shall include all labor, materials, tools, equipment, transportation and incidentals necessary to maintain and control all vehicular and pedestrian traffic through the construction site. The cost of furnishing and maintaining traffic control during the construction including flagmen as necessary must be included in the various bid items, and no extra compensation will be paid to the Contractor.
In addition to the requirements of the MUTCD handbook, the City's Project Manager may require fifteen (15) foot wide travel lanes, flatter traffic tapers, additional traffic control devices, barricading, and other signing in order to ensure driver awareness and safety in the construction area. Further, the Contractor shall provide Type II or Type III barricades with flashers and delineators at locations as determined by the City's Project Manager.
The Contractor shall provide access to local businesses at all times unless otherwise approved by the City's Project Manager. This may include providing steel plates at some driveway approaches. Message boards shall be used for pre-construction warnings, lane closure/detour areas, and placed 14 calendar days in advance of the closure/detour.
The posting of "NO PARKING" signs within the construction limits is permitted with the approval of the City Engineer. "NO PARKING" signs shall contain a "TOW AWAY" warning.
These signs shall be furnished and maintained by the Contractor and shall be of the type approved by the City's Project Manager. Each sign posted shall have the date and time indicating the duration of the "NO PARKING" prohibition printed clearly in a manner acceptable to the City's Project Manager. New signs shall be posted when changes occur in the parking prohibitions indicated on the previously posted signs. Signs must be posted at least seventy-two (72) hours in advance of construction or they are invalid. Signs shall not be attached to trees or taped to street light or traffic signal poles. Contractor shall only post "NO PARKING SIGNS" on one side of the street at a time unless otherwise approved by the City's Project Manager. The signs shall be effective for no more than five (5) working days and shall be removed within twenty-four (24) hours after the work is complete. If signs are not removed in a timely manner, the City's Project Manager may suspend all work until the signage requirement is corrected. All signs, lights and other warning devices used shall be in accordance with State of California Business and Transportation City Department of Public Works Manual of Warning Signs, Lights and Devices for Use in Performance of Work upon Highways.
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4. Notification of Utilities
The provisions of Section 402 entitled "Utilities" of the Standard Specifications shall apply. The Contractor shall contact the Underground Service Alert of Southern California (U.S.A.) at least three (3) working days in advance of the construction work.
5. Protection of the Public
The Contractor shall take such steps and precautions as his/her operations warrant to protect the public from danger, loss of life, loss of property or interruption of public services. Unforeseen conditions may arise which will require that immediate provisions be made to protect the public from danger or loss, or damage to life and property, due directly or indirectly to prosecution of work under the contract. Whenever, in the opinion of the City's Project Manager, a condition exists in which the Contractor has not taken sufficient precaution of public safety, protection of utilities, and/or protection of adjacent structures or property, the City's Project Manager will order the Contractor to provide a remedy for the condition. If the Contractor fails to act on the situation within a reasonable time period as determined by the City's Project Manager, or in the event of an emergency situation, the City's Project Manager may provide suitable protection by causing such work to be done and material to be furnished as, in the opinion of the City's Project Manager, may seem reasonable and necessary. The cost and expense of all repairs (including labor and materials) as are deemed necessary, shall be borne by the Contractor. All expenses incurred by the City for emergency repairs will be deducted from the final payment due to the Contractor.
6. Noise Restrictions
The Contractor may not operate certain power equipment, within a residential area or within a radius of five-hundred (500) feet from a residential area, except during the following times: From 7:00 am to 4:00 pm, Monday through Friday
From 6:00 am to 5:00 pm on Saturday and Sunday
In addition, the noise level from the Contractor's operations shall not exceed eighty-five (85) dBA when measured within a one hundred (100) foot radius at any time.
7. Construction Order of Work
Work shall be scheduled so as to lessen the impact upon businesses. All construction shall conform to the latest edition of the Standard Specifications and shall proceed in a smooth, efficient, timely and continuous manner. As such, once construction is started in a work area, the Contractor will be required to work continuously in that work area until construction has been completed and the work area is open and accessible to both vehicular and pedestrian traffic in a manner approved by the City's Project Manager before the next stage of work will be allowed to begin.
Once construction is started in a work area, the Contractor shall not withdraw manpower or equipment from that work area in order to start construction in another work area if doing so, in EXHIBIT B – SPECIAL PROVISIONS
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the opinion of the City's Project Manager, delays the completion of the work presently under construction.
The Contractor shall maintain continuous access to all residents and businesses within the project limits, including drive approaches, unless the Contractor has obtained the approval of the City's Project Manager to close either such access or drive approach.
No stockpiling of material and construction equipment on public streets or sidewalks will be permitted on this project unless approved by the City's Project Manager. Material and equipment placed on public streets, sidewalks and on the construction areas shall be used the same day.
8. Character of Workers
If any subcontractor or person employed by the Contractor shall fail or refuse to carry out directions of the City's Project Manager or shall appear to the City's Project Manager to be incompetent or act in a disorderly or otherwise improper manner, he/she shall be immediately discharged from the project on the request of the City's Project Manager, and such person shall not be reemployed on the work. If said individual has an ownership interest in the contracting entity, the City's Project Manager will serve written notice upon the Contractor and the Surety providing the faithful performance bond, in accordance with Section 6-8, "Termination of the Contractor by Default" of the Standard Specifications, demanding complete and satisfactory compliance with the Contract.
9. Examination of Site
The Contractor is required to examine the site and judge for themselves the location. Physical conditions, substructures and surroundings of the proposed work.
10. Mobilization
The cost of all preparatory work and operations for the multiple movements of personnel, equipment, supplies, and incidentals to the project site must be included in the various bid items, and no extra compensation will be paid to the Contractor.
11. Dust Control
Throughout all phases of construction, including suspension of work, and until final acceptance of the project, the Contractor shall abate dust nuisance by cleaning, sweeping and sprinkling water, or other means as necessary when requested by the City. Failure of the Contractor to comply with the City's Project Manager cleanup orders may result in an order to suspend work until the condition is corrected. No additional compensation or extension of contract completion time will be allowed as a result of such suspension. The cost of furnishing and operating dust control during the construction project shall be included in the various bid items, and no extra compensation will be paid to the Contractor.
12. Best Management Practices (BMP’s)
The Contractor shall submit a copy of their Best Management Practices (BMPs) to the City Engineer for review ten (10) days prior to the beginning of any work.
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The Contractor is hereby notified that specific construction practices in the Standard Specifications, Section 3-12.6.2, “Best Management Practices (BMPs)” are considered to be Best Management Practices. The Contractor shall implement and maintain such BMP’s as are relevant to the work, and as are specifically required by the Plans or Special Provisions. The Contractor shall not commence activity until the BMP submittal has been reviewed and approved.
13. Temporary Water Meter
If necessary, the Contractor shall obtain a temporary water meter from the City of Vernon Water Department by placing a deposit of $1,000. Contractor shall pay for all water used.
Contractor shall not relocate the service. The Contractor shall call the City of Vernon Water Department to relocate the service and will be charged fifty dollars ($50.00) for each relocation.
14. Cleaning of Site During Construction
During construction, all existing improvements, including pavement, sidewalk, curb and gutter, adjacent to the work area shall be swept free from soils, gravel, dirt or debris on a daily basis.
The Contractor is responsible for maintaining all sidewalk, curb and gutter areas within the construction zone free from loose materials at all times.
15. Parkway Restoration
Parkway and lawn areas disturbed by construction and/or root removal operations shall be backfilled with material approved by the City's Project Manager, mechanically compacted to 90% of optimum density, and graded to join the adjacent improvements and parkway lawn areas. The parkway and lawn area shall be restored by sodding in accordance with Section 801-4.8 of the Standard Specifications, and the irrigation system to match the adjacent parkway area. The payment for this work shall be included in the most appropriately related bid item.
16. Final Cleaning of Site and Restoration
The Contractor shall be responsible for cleaning and restoration of all damaged existing improvements such as sidewalk, driveway, curb and gutter, and private property at no cost to the City. The Contractor shall remove all loose aggregates by sweeping all the sidewalks and gutters. The cost of furnishing and operating such sweeping after the construction of the project must be included in the various bid items, and no extra compensation will be paid to the Contractor.
17. Contractor Responsibility
The Contractor shall be responsible for the final product and shall make any quality control, adjustments and corrections necessary to obtain the final product accepted by the City's Project Manager. The Contractor shall perform process and quality control sampling and testing and exercise management control the work of his/her subcontractors, technicians and workers to ensure that the milling, transporting, spreading, compaction, and finishing processes conform to these Specifications. The City's Project Manager shall have unrestricted access to the laboratory, sampling, testing sites, and all information resulting from mix design and quality control activities.
All Quality Control testing results shall be submitted to the City's Project Manager on a daily basis.
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C. Routine Maintenance
The Contractor shall enact a continuing comprehensive maintenance program designed to eliminate or reduce any incidence of malfunctions, complaints, and extension of the useful life of the City’s traffic signal equipment. The program shall include at a minimum the following:
1. Monthly and Annual Preventative Maintenance
The Contractor shall provide monthly and annual preventative maintenance on the forty-two (42) signalized intersections per the list of tasks in Attachment “C”. The Contractor shall complete Monthly Preventative Maintenance Checks per the list for each maintenance inspection and shall indicate the minimum work required for each item.
The Contractor shall maintain a record of all service calls and work performed upon the signal equipment, listing dates, hour of day and description of service work performed. A copy of such record shall be maintained at all times within the controller cabinet at each signal location. A log sheet giving a brief description of all routine and extraordinary maintenance activities shall be attached to each monthly invoice. A monthly report of activities for each intersection's events, sorted by time, is to be included in the reports requested by the City. This is to be accompanied by a report of all activities sorted by time as well.
The Contractor shall maintain electronic records of the completed checklist form for each intersection in the Contractor’s MMS throughout the term of this contract. The Contractor shall make available via a web interface electronic records of the completed monthly preventative maintenance checks as well as activity reports in real time.
The Contractor shall maintain two separate logs at each signalized intersection under this contract.
One log shall detail each monthly and preventative maintenance inspection by the Contractor. The Contractor shall complete at a minimum on this log, the inspection date, arrival time, departure time, type of inspection, any findings or repairs, and the Contractor’s employee name or ID. The other log shall detail any extraordinary repairs or service calls for the intersection. This log shall detail the nature of the emergency/service call, the Contractor’s findings, the repair made, Repair Order number, if applicable, arrival time at the intersection, departure time, and the Contractor’s employee name or ID. All information must be collected and submitted with the monthly invoice.
2. Traffic Signal Control Equipment
The Contractor shall repair, replace or otherwise render in good working order any and all defective parts of all traffic signal control equipment. Whenever the Contractor replaces any defective parts on either a temporary and/or permanent basis, the Contractor shall identify the parts being replaced by manufacture’s make and model. Furthermore, the Contractor shall only use new parts for permanent replacement. Exceptions to this requirement shall only occur on an individual basis upon advance written approval from the City.
No permanent changes of traffic signal control devices shall be done without prior written approval from the City. In addition, any changes shall also be indicated on the maintenance or EXHIBIT B – SPECIAL PROVISIONS
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repair log within the traffic signal controller cabinet. The Contractor agrees to notify the City in advance of any planned or scheduled traffic signal turn-offs/ turn-ons only upon prior written approval by the City.
3. New Installation or Deletions
The Contractor shall maintain any new traffic signal equipment and any other related devices, which are installed for or by the City throughout the term of the contract. These devices will be deemed to be added to the existing signalized intersections listed on Attachment “B” when the City notifies the Contractor of the installation thereof. These added devices, regardless of the complexity and technology shall be maintained in the same manner and for the same flat rate as those devices already covered by the contract.
Should responsibility for the maintenance of any current or future traffic signal device cease to be the City’s, the City will notify the Contractor in writing of the last date to perform maintenance.
D. Extraordinary Maintenance
1. Definitions
Extraordinary maintenance shall consist of but not be limited to the following:
a. Repair or replacement of failed or malfunctioning parts of the signal system if caused by vehicle collision, vandalism, civil disorder, windstorm, natural disasters, street construction, or excavation.
b. Minor upgrading or installations as directed by the City. c. Replacement of detector loops including saw cut lead-ins as required. d. Replacement of pedestrian indications.
e. Installation of complete new pedestrian heads.
f. Installation or replacement of pedestrian push buttons. g. Installation of new traffic signal heads.
h. Installation of Light Emitting Diodes (LED’s) as directed by the City representative.
2. Notification
The Contractor shall contact the City's Project Manager regarding any extraordinary maintenance work except emergency repairs and seek his/her prior approval in writing before the work is scheduled. The Contractor shall notify the City representative by telephone at least twenty-four (24) hours in advance before any work is commenced, except in emergencies where injury or property damage may result without prompt response.
3. Emergencies
The Contractor shall respond immediately to emergency calls such as a total blackout, when directed by the City, and dispatch the qualified personnel and equipment to reach the site within two (2) hours under normal circumstances.
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For the emergency repair of a signal, which is totally blacked out, the following procedure of traffic control shall apply:
a. The Contractor shall dispatch qualified personnel and equipment to reach the site within two (2) hours under normal conditions. The Contractor's vehicles shall carry traffic cones, flashing arrow boards, traffic warning signs, etc., which shall be used when directing traffic during an emergency and/or when deemed necessary by the signal technician, the City's Project Manager or his representative. b. If no police officer is present and temporary stop signs have been set up when the Contractor arrives at the site, the Contractor shall set up more traffic warning and control devices, if deemed necessary, and proceed to repair the signal. After the signal is back in operation, the Contractor shall set the intersection in flash, remove all of the temporary traffic control devices and place those devices owned by the City off to the side of the road and then switch the intersection back to normal operation.
c. If a police officer is still at the site when the Contractor arrives, the Contractor shall quickly examine the signal, evaluate the situation and discuss it with the police officer. If the repair will take only a few minutes, the police officer may stay to continue to direct traffic while the Contractor repairs the signal. If the repair will take longer than the officer can wait, the Contractor shall immediately set up necessary traffic control devices and other necessary warning devices and relieve the police officer.
4. Method of Payment
Upon receipt of an itemized invoice within thirty (30) days of completion of the work, City shall compensate Contractor for such repairs required beyond the scope of routine maintenance as follows:
a. Materials - The city shall pay the Contractor for materials used in extraordinary maintenance per the bid items on the Bidder’s Proposal plus the percentage markup specified in this agreement NOT TO EXCEED 15%. All materials and parts shall be new or have the approval of the City's Project Manager, if otherwise. The City has the right to inspect the Contractor's records to verify any material costs used in extraordinary maintenance.
b. Direct Labor - The Contractor shall present with their monthly invoice with a record of hours spent in extraordinary maintenance of traffic signals and appurtenances per intersection. City shall pay the Contractor for such hours of extraordinary maintenance at the rates specified in this agreement. Said hourly rates shall be the total cost to the City. Rates shall include all compensation for wages, profit, overhead, any fringe benefits such as employer payments to, or on behalf of EXHIBIT B – SPECIAL PROVISIONS
Contract No. 20240283
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workmen for health and welfare, insurance worker's compensation, pension, vacation, sick leave or any local, State, Federal or union tax or assessment. c. Equipment - The City shall pay Contractor for equipment used in extraordinary maintenance on a per trip basis as specified in this agreement. The listing of per trip equipment rates shall constitute total rates to be paid by City when specified equipment is used. No additional payments of any kind shall be paid for equipment except as specified in this agreement of per trip rates as stated. No additional compensation shall be paid for transporting the equipment to or from the job site. d. Traffic Collisions – Repairs or replacement of failed or malfunctioning parts of the signal system caused by vehicle collisions shall be billed separately per incident.
5. Rewire
Rewire of any intersection will be charged on a time and material basis. Prior to any work of this type, a written proposal will be submitted by Contractor and approved by the City's Project Manager before any work commences.
6. Knockdowns
All knockdowns (except for a Type I-A pole) will be charged on a time and material basis. A written proposal will be submitted by Contractor and approved by the City's Project Manager for the replacement of any damaged poles or mast arms before the order is placed.
E. Miscellaneous
1. Records
The Contractor shall maintain a record of all service calls and work performed upon the signal equipment, listing dates, hour of day and description of service work performed. A copy of such record shall be maintained at all times within the controller cabinet at each signal location.
A log sheet giving a brief description of all routine and extraordinary maintenance activities shall be attached to each monthly invoice.
A monthly report of activities for each intersection's events, sorted by time, is to be included in the reports requested by the City. This is to be accompanied by a report of all activities sorted by time as well.
2. Notification
The Contractor shall notify by telephone, the City's Project Manager or his authorized representative, within 24 hours of the alteration of the operation of any signal or the installation or removal of any substitute controller or component.
3. Shutdowns
The Contractor shall notify the Vernon Police Department and the City's Project Manager or his authorized representative of any signal turn-offs or turn-ons necessitated by his operations and EXHIBIT B – SPECIAL PROVISIONS
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shall not make said turn-offs or turn-ons until a police officer is present or unless given permission to proceed without police control by the City's Project Manager or his authorized representative.
4. Compensation for Routine Maintenance
The City will compensate Contractor at the agreed price per signalized intersection per month.
Said compensation shall include all services rendered, labor, materials, equipment, overhead and profit. Delays due to Contractor are subject to liquidated damages as specified in the specifications (Section B-1.07).
5. Types of Signals
The agreed upon prices for both routine and extraordinary maintenance shall apply to all types of signal controllers, accessories and systems as may exist in the City now or that may be installed during the life of the contract.
6. Traffic Detector Loops
The traffic detector loops shall be installed per the Caltrans Standard Plan ES-5B. Loops and “home runs” shall be cut 4 inches deep with the stub out cut to match. Home run loops shall be spliced in series and twisted at a rate of 3 turns per foot. Cut out, deburr, and place new 4 inches deep threaded ring for stub out.
The cost of furnishing and installation of new traffic detector loops and “home runs” complete in place and in working order must be included in the loop bid item.
EXHIBIT B – SPECIAL PROVISIONS
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EXHIBIT C
EQUAL EMPLOYMENT OPPORTUNITY
PRACTICES PROVISIONS
A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities.
B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age.
C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class.
D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law.
E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law.
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ATTACHMENT A
TRAFFIC SIGNAL LOCATIONS MAP
SPECIFIC FOR THIS PROJECT
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ATTACHMENT B
INTERSECTIONS
SPECIFIC FOR THIS PROJECT
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ATTACHMENT “B”
VERNON SIGNALIZED INTERSECTIONS
1. 26TH STREET @ BONNIE BEACH PLACE
2. 37TH STREET @ SEVILLE AVENUE
3. ALCOA AVENUE @ FRUITLAND AVENUE
4. ALCOA AVENUE @ LEONIS BOULEVARD
5. ATLANTIC BOULEVARD @ 3030 ATLANTIC
6. ATLANTIC BOULEVARD @ BANDINI BOULEVARD
7. ATLANTIC BOULEVARD @ DISTRICT BOULEVARD
8. BANDINI BOULEVARD @ I-710 OFF-RAMP
9. BANDINI BOULEVARD @ BONNIE BEACH PLACE
10. BANDINI BOULEVARD @ PENNINGTON WAY
11. BANDINI BOULEVARD @ SIERRA PINE AVENUE
12. BANDINI BOULEVARD @ SUNOL/AYERS
13. BOYLE AVENUE @ FRUITLAND AVENUE
14. BOYLE AVENUE @ LEONIS BOULEVARD
15. BOYLE AVENUE @ RANDOLPH STREET
16. DISTRICT BOULEVARD @ LOMA VISTA AVENUE
17. DOWNEY ROAD @ DISTRICT/LEONIS BOULEVARD
18. DOWNEY ROAD @ FRUITLAND AVENUE
19. DOWNEY ROAD @ VERNON AVENUE
20. PACIFIC BOULEVARD @ FRUITLAND AVENUE
21. PACIFIC BOULEVARD @ LEONIS BOULEVARD
22. SANTA FE AVENUE @ 25TH/26TH STREET
23. SANTA FE AVENUE @ 27TH STREET
24. SANTA FE AVENUE @ 28TH STREET
25. SANTA FE AVENUE @ 37TH STREET
26. SANTA FE AVENUE @ 38TH STREET
27. SANTA FE AVENUE @ VERNON AVENUE
28. SANTA FE AVENUE @ PACIFIC BOULEVARD/VERNON AVENUE
29. SANTA FE AVENUE @ 48TH STREET
30. SANTA FE AVENUE @ FRUITLAND AVENUE/51ST STREET
31. SANTA FE AVENUE @ 55TH STREET
32. SLAUSON AVENUE @ ALCOA AVENUE
33. SLAUSON AVENUE @ BOYLE AVENUE
34. SLAUSON AVENUE @ DOWNEY ROAD/MALBURG WAY
35. SOTO STREET @ 26TH STREET
36. SOTO STREET @ 2800 SOTO
37. SOTO STREET @ 37TH STREET/BANDINI BOULEVARD
38. SOTO STREET @ FARMER JOHN DRIVEWAY
39. SOTO STREET @ FRUITLAND AVENUE
40. SOTO STREET @ LEONIS BOULEVARD
41. SOTO STREET @ VERNON AVENUE
42. WASHINGTON BOULEVARD @ HOBART YARD DRIVEWAY
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ATTACHMENT C
TASKS
SPECIFIC FOR THIS PROJECT
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ATTACHMENT “C”
MONTHLY PREVENTATIVE MAINTENANCE TASKS
I. ROUTINE MONTHLY MAINTENANCE
GENERAL:
It is the intent of the City of Vernon that the City's 41 traffic signals are maintained so as to provide the motoring public with a minimum of inconvenience caused by the failure of any signal components, and to present a well-kept signal installation. All traffic signal work: sha1l be performed in accordance with the current Standard Plans and Section 86. "Signals, Lighting, and Electrical Systems" of the Standard Specifications for the State of California, Department of Transportation and the current City Standard Traffic Details. This maintenance sha1l be extended to include future signal installations at the proposed unit prices. The following is a list of tasks to be completed for each intersection on a monthly basis:
CONTROLLER CABINET:
CONTROLLER CABINET MOUNTING:
Check the snugness of the nuts on the cabinet anchor bolts, tighten, if necessary, being sure not to distort the cabinet door opening by over tightening.
CONTROLLER CABINET FOUNDATION SEAL:
If standing water or evidence of water is present inside the bottom of the cabinet, check the seal between the bottom of the cabinet and the foundation for deterioration; report the need for a reseal, as necessary.
DOOR GASKETS:
Check all door gaskets on the controller cabinet, service cabinet and any other enclosures for evidence of moisture or deterioration. Report the need to completely replace any gaskets showing signs of leaking or deterioration.
CABINET VENTS:
Check the vents in both the cabinet door and above the door, or at the top of the cabinet to ensure that they are free of any foreign material.
AIR FILTER:
Vacuum or knock the dust out of filters. Filters shall be changed every 6 months unless damaged.
For any permanent filters, vacuum, wash or knock the dust out of the filter. Permanent filters require no replacing unless damaged.
CABINET FAN:
Verify that the cabinet fan operates properly with a minimum of noise.
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THERMOSTAT:
Verify that the cabinet fan thermostat is set at 100 degrees.
INTERIOR LIGHT:
Verify the proper operation of the cabinet's interior light. If a manual light is installed, check for proper operation.
DOOR PANEL HARNESSES:
Check the harnesses leading from the main panel to the police and auxiliary panels on the cabinet door to ensure they are not being pinched and do not bind against the cabinet door. Adjust, if necessary.
HINGES AND LOCKS:
Check for free movement of all doors, latching assemblies and locks on the controller cabinet, service cabinet and any other enclosures. Use a minimum of oil or spray lubricant and remove any excess. Use oil for this purpose which does not attract dirt or leave residue.
VACUUM CABINET:
Blow or brush off shelves, terminal blocks and components and thoroughly vacuum the interior of the cabinet, including the police panel.
INSECT INFESTATION:
Check for any signs of ants, wasps or other insects within the cabinet and report any positive findings for the City to take the necessary steps for extermination and prevention.
CABINET GROUNDING:
Using appropriate equipment, check during the 1st month of the contract and then annually the resistance between AC and Ground.
SERVICE CONNECTIONS:
Verify that the neutral, ground and power connections are secure in the controller and service cabinets.
PLUG-IN COMPONENTS:
Check that each plug-in component Crack mount detectors, relays, load switches, etc.) fits tightly and securely.
TERMINAL CONNECTIONS:
Test semi-annually or following any wiring repair, each terminal screw by backing off slightly then retightening to confirm that it is secure.
GROUND FAULT RECEPTACLE:
Verify the proper operation of "Test" and "Reset" buttons on GFI type outlets.
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INTERSECTION RECORDS:
Ensure that all intersection cabinet wiring diagrams are present. Notify City representative if updates are required. Note all work, routine and extraordinary, in the log in the cabinet as to the reason for the call/work and results or work accomplished by date and time.
CONTROLLER OPERATION:
Manually place vehicle and pedestrian calls on each phase through the cabinet test switches or the controller key pad, to verify controller servicing of each active phase. Check controller logs for any faults that may have occurred and take notes for the file.
CONFLICT MONITOR MALFUNCTION MANAGEMENT UNIT:
Verify time and dates are correct in any CMU/MMU with an intema1 clock and for proper operation of the unit.
DETECTOR OPERATION:
Verify the detection zones for each detector by observing the turn-on of the appropriate detector indicator as a vehicle passes over the detector loop(s) or detection zone. Check also that a call is placed on the correct controller phase. Verify detection zone vertically above loops whenever a problem has occurred.
EQUIPMENT DISPLAYS AND INDICATORS:
Verify that all video, LED and LCD displays and indications on all cabinet equipment are working properly.
SYSTEM TELEMETRY:
Check operation of telemetry on controller display and modem, if equipped, located in the cabinet. Report any malfunction immediately.
EMERGENCY VEHICLE PREEMPTION (EVP):
Verify that the EVP is operating with the use of a strobe light. Report any malfunction immediately (Completed every 90 days).
INTERSECTION WALK-AROUND:
GENERAL:
Remove any easily removed, unauthorized signs and posters and report all graffiti existing on signal poles or equipment.
SIGNAL HEADS:
Verify that all vehicle and pedestrian signal heads properly display all indications and the signals are not damaged. Verify the alignment of all heads to the intended direction. Also verify that all backplates, visors and doors are visibly secure.
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PEDESTRIAN EQUIPMENT:
Check all pedestrian push buttons and signals by band to ensure that they are securely mounted and operating properly. Contractor will maintain a supply of ADA push buttons, as these are to be repaired immediately on discovery and reported to City staff.
MISCELLANEOUS:
Check operation of safety lighting using the manual test switch located in the service cabinet Visibly check all signal-mounted signs and advance warning signs/beacons for deterioration, proper mounting, alignment and operation; Verify that all pullbox covers, hand hole covers, etc. are secured and not damaged or missing. Check all detector loops for sealant deterioration, exposed wire, etc. Record any problems or irregularities and take corrective action as soon as possible, for contractor provided services. Visibly check pullboxes for evidence of ants and gophers. Report any positive findings.
LAMPS AND LIGHTING:
When a vehicle or pedestrian indication is found to be out and the lamp and module is damaged, defective or past its useful life, the lamps/module shall be replaced without charge for labor or equipment using Dialight LED Ball Signal Modules (8 inch and 12 inch) and shall be fully compliant to the ITE VTCSH LED Circular Supplement specifications dated and adopted June 27, 2005. All Countdown Pedestrian Signals shall be replaced when needed with Dialight (16x18), part number 430-6479-001X. Contractor shall replace internally Illuminated Street Name Sign lamps as they become dim or inoperative. ISNS lamps shall be F72T2 Cool White Fluorescent lamps meeting the requirements of ANSI STD. C78. The Contractor shall during the 1st of this month clean and polish all lenses and reflectors including illuminated street name signs and safety lights. The contractor shall replace burned out lamps as they occur under extra work charges.
ANNUAL CONFLICT MONITOR TESTING:
Replace conflict monitor's (CMU's, MMU's) with a spare unit and submit the monitors for testing and certification. It is suggested that ten (10) monitors be replaced and the originals be submitted for testing and certification on a rotating basis over 11 months. Printed certification is to be provided for each conflict monitor/malfunction management unit. The contractor will have available 6 spare MMU's and 4 spare CMU's for rotation use in testing. Testing of conflict monitors shall be included in price proposal for routine maintenance.
PAINTING:
Contractor shall repaint all metal standards, signal heads, back plates, visors, and controller housing (if already painted) on the second year of the contract, unless directed otherwise by the City. Repainting shall be completed in June and shall be conducted by spray painting methods.
Colors as specified by the City. For those controller cabinets that have metal finishes, the Contractor shall wipe clean controller with detergent. Detergent per manufacturer's requirements.
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ROUTINE EMERGENCY SERVICES:
The Contractor shall maintain a twenty-four (24) hour per day emergency service for the replacement of burned-out signal and safety lamps, adjustment of turned heads, repair of controller malfunctions or any damage creating a public hazard. The Contractor shall repair parts, replace parts and lamps, and otherwise keep the traffic signals in good working condition.
This telephone number is to be made available to all persons designated by the City.
The Contractor shall make immediate service calls on an emergency basis, responding within two (2) hours in the event of malfunctions of the controller or signal system or turned head. The replacement of burned-out signal lamps, internally illuminated street name sign lamps, or safety lights need not be on an emergency basis provided that there are at least two (2) indications still operative for each direction of travel. Such replacements shall be handled on the next business day but in no case more than 48 hours. All labor, materials, equipment, travel, and parts for routine emergency service shall be included in the routine maintenance proposal price per signalized intersection per month, and no additional compensation will be allowed.
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NOTICE INVITING BIDS
for
Citywide Traffic Signal Maintenance & Repair FY2024
in the
City of Vernon
One original sealed bid must be signed and submitted prior to 2:00 p.m., Wednesday, March 6, 2024 to the City Clerk’s Office, City of Vernon, 4305 Santa Fe Avenue, Vernon, CA 90058, (“Bid Deadline”).
All bids shall be enclosed in sealed envelopes, distinctly marked “Bid” with the title of the bid and the bidder’s name and address appearing on the outside.
Bids shall be clearly titled and should be mailed or delivered in person before 2:00 p.m. on the Bid Deadline. LATE SUBMITTALS WILL NOT BE ACCEPTED. Bids will be opened in the City Clerk’s Office at 2:00 p.m. on Wednesday, March 6, 2024. At the bid opening, the City Clerk shall open bid packages and acknowledge the receipt of Bids. Once all Bid Packages are opened and announced, the contents (collectively, the “Completed Bid Forms” and the uncompleted forms, the “Bid Forms”) will be made available for public review. Except as set forth in Paragraph 22 (“Public Records”), the Completed Bid Forms, once removed from the Bid Packages by the City Clerk, will be a matter of public record.
Bid Documents, Plans and Specifications are available at no charge at www.cityofvernon.org/planetbids.
Pre-Bid Meeting:
A pre-bid meeting to answer any questions regarding the project plans and specifications is scheduled for 10:30 a.m. on Wednesday, February 28, 2024 in the Public Works Department, 4305 Santa Fe Avenue, Vernon, California. This meeting is to answer any questions regarding the project plans and specifications.
Attendees must adhere to the State and local guidelines regarding COVID-19, including applicable industry guidelines for construction sites. Attendance is not mandatory.
City of Vernon Contact Person: Public Works Department
Attention: Lissette Melendez, Project Engineer
Phone: (323) 583-8811 ext. 246
Email: [email protected]
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Mandatory Qualifications for Bidder and Designated Subcontractors:
A Bid may be rejected as non-responsive if the Bidder fails to meet the essential requirements for qualification.
General Scope of Work:
Contractor shall furnish labor, materials, equipment, services, and specialized skills to perform work involved in the Project. The Work in the Bid is defined in the Project Drawings and Specifications and will generally include the following:
Ongoing and regular field preventative maintenance and repair of traffic signal equipment, as further described in the special provisions, and other related equipment by truly trained and qualified personnel. In addition, the Contractor shall provide Emergency Service response for the repair of the City’s forty-two (42) signalized intersections on a 24-hour a day, 7 days per week basis, including all holidays.
In the event of any conflicts, refer to the Procedure of Contract Documents” contained in General Conditions, Section 1.10.
Mandatory Qualifications for Bidder and Designated Subcontractors:
A Bid may be rejected as non-responsive if the Bid fails to document that Bidder meets the essential requirements for qualification. As part of the Bidder’s Statement of Qualifications, each Bid must establish that:
Bidder satisfactorily completed at least three (3) prevailing wage public contracts in California; each comparable in scope and scale to this Project, within three (3) years prior to the Bid Deadline and with a dollar value in excess of the Bid submitted for this Project.
Other Bidding Information:
1. Contract Time: This Work must be completed within 1,095 calendar days from the date of commencement as established by the City’s written Notice to Proceed.
2. 3.
Amount of Liquidated Damages:
a. $200 per hour late on emergency call-outs.
b. $500 for each day past the first and last seven (7) working days of the month of noncompletion of the preventative maintenance.
Intermediate Completion Milestones
- Contractor shall perform Monthly Maintenance to half of the signalized intersections listed in Attachment B during the first seven (7) working days of each month and the other half during the last seven (7) working days of each month.
4. 5.
Bidding Documents. Bids must be made on the Proposal Form contained herein.
Engineer’s Estimate. An Engineer’s Estimate of the cost of construction of this Work has
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been prepared. Said estimate is in the range of $43,000 to $49,000 per year.
6. Acceptance or Rejection of Bids. The City reserves the right to reject any and all bids, to award all or any individual part/item of the bid, and to waive any informalities, irregularities or technical defects in such bids and determine the lowest responsible bidder, whichever may be in the best interests of the City. No late bids will be accepted, nor will any oral, facsimile or electronic bids be accepted by the City.
7. Contractor’s License. At the time of the Bid Deadline and at all times during performance of the Work, including full completion of all corrective work during the Correction Period, Contractor must possess a California contractor’s license or licenses, current and active, of the classification required for the Work, in accordance with the provisions of Chapter 9, Division 3, Section 7000 et seq. of the Business and Professions Code. In compliance with Public Contract Code Section 3300, the City has determined that the Bidder must possess the following license(s): C-10, Electrical Contractor, and D-31, Pole Installation and Maintenance Contractor from the California State License Board as applicable to such self-performed Work. Contractor may substitute the D-31 license for a Class A, General Engineering Contractor’s License. The Bidder will not receive a Contract award if at the time of submitting the bid, the Bidder is unlicensed, does not have all of the required licenses, or one or more of the licenses are not current and active. If the City discovers at the time of the Bid Deadline that Contractor is unlicensed, does not have all of the required licenses, or one or more of the licenses are not current and active, the City may reject the Bid, cancel the award, declare the Bid Bond as forfeited, keep the Bid Bond’s proceeds, and exercise any one or more of the remedies in the Contract Documents in addition to those provided by law.
8. Subcontractors’ Licenses and Listing. Bidders must list each Subcontractor whom the Bidder must disclose under Public Contract Code Section 4104 (Subcontractor Listing Law), and the Bidder must provide all of the Subcontractor information that Section 4104 requires (name, address, license number, public works contractor registration number issued pursuant to Labor Code Section 1725.5, and portion of the Work). An inadvertent error in the license number or public works contractor registration number will not be considered nonresponsive if corrected within 24 hours after the bid opening. In addition, the City requires the Bidder to list the dollar value of each Subcontractor’s labor or services. The City reserves the right to review and disqualify any proposed Subcontractor. The City’s disqualification of a Subcontractor does not disqualify a Bidder. In such case, prior to and as a condition to award of the Contract, the successful Bidder shall substitute a properly licensed and qualified Subcontractor— without an adjustment of the Bid Amount. At the time of the Bid Deadline and at all times during performance of the Work, each listed Subcontractor’s license must be current and active for the portion of the Work listed and shall hold all specialty certifications required for such Work.
9. Permits, Inspections, Plan Checks, Governmental Approvals, Utility Fees and Similar Authorizations.
Unless specified otherwise, all Governmental Approvals and Utility Fees shall be obtained and paid for by Contractor and will be reimbursed based on Contractor’s actual direct cost without markup.
10. Bid Forms and Security: Each Bid must be made on the Bid Forms obtainable at www.cityofvernon.org/planetbids or at the Public Works Department. Each Bid shall be accompanied by a cashier’s check or certified check drawn on a solvent bank, payable to “City of
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Vernon,” for an amount equal to ten percent (10%) of the total maximum amount of the Bid.
Alternatively, a satisfactory corporate surety Bid Bond for an amount equal to ten percent (10%) of the total maximum amount of the Bid may accompany the Bid. Said security shall serve as a guarantee that the successful Bidder will, within fifteen (15) calendar days after the date of the award of the contract, enter into a valid contract with the City for said Work in accordance with the Contract Documents.
11. Bid Irrevocability. Bids shall remain open and valid for ninety (90) calendar days after the Bid Deadline.
12. Substitution of Securities. Pursuant to California Public Contract Code Section 22300, substitution of securities for withheld funds is permitted in accordance therewith.
13. Prevailing Wages. This Project is a “public work” as defined in California Labor Code Section 1720. Contractor awarded this Contract and all Subcontractors of any tier shall not pay less than the minimum prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Work. The Director of Industrial Relations of the State of California, pursuant to the California Labor Code, and the rates determined by the California Director of Industrial Relations are available online at www.dir.ca.gov/DLSR/PWD/.
14. Payroll Records. Pursuant to SB 854, Contractor and any Subcontractors shall furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement).
15. Registration with the Department of Industrial Relations (DIR). No contractor or subcontractor may be listed on a bid proposal for a public works project unless currently registered and qualified (including payment of any required fee) with the DIR pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]. No contractor or subcontractor may be awarded a contract for public work on a public works project unless currently registered and qualified (including payment of any required fee) with the DIR pursuant to Labor Code section 1725.5. This project is subject to compliance monitoring and enforcement by the DIR.
Carlos Fandino
City Administrator
Dated: ___________ (Approved as to form by the City Attorney’s Office) Published: _______
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City of Vernon
Instructions for Bidders
Project: Citywide Traffic Signal Maintenance & Repair FY 2024 for the Department of Public Works
City personnel with whom prospective bidders will deal with are:
Lissette Melendez, Project Engineer, Public Works Department, 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811 ext. 246
Bid opening date and time: Wednesday, March 6, 2024, at 2:00 p.m. (“Bid Deadline”).
Bids will be received and opened at the Office of the City Clerk, 4305 Santa Fe Avenue, Vernon, CA 90058.
The bid must be received by the City Clerk’s Office prior to the time set for bid opening. A bid received by the City Clerk’s Office after the time set for the bid opening is a non-responsive bid and shall not be considered.
GENERAL BID REQUIREMENTS
To be considered, a bidder must strictly follow the format for bids in the specifications. Bids must be binding and firm. Any bids may be withdrawn before bid opening, but bids shall remain open and valid for ninety (90) calendar days after the Bid Deadline.
1. CONTRACTORS LICENSE
The Bidder must possess a valid State of California Contractors License and must list type in the classification(s) specified in the Notice Inviting Bids at the time of the Bid Deadline and at all times during the performance of the Work, except as otherwise provided in California Business and Professions Code Section 7028.15.
2. INTERPRETATION OF BIDDING DOCUMENTS, SPECIFICATIONS AND
ADDENDA
A. If any Bidder contemplating submitting a Bid is in doubt as to the true meaning of any part of the Bidding Documents, or who finds discrepancies, errors or omissions therein or who finds variances in any of the Bidding Documents with applicable law, such Bidder shall at once submit a written request for an interpretation or correction thereof to the City’s representative identified in the Notice Inviting Bids, or other designated individual. All Bidders shall submit such written requests to City not less than ten (10) calendar days prior to the Bid Deadline. The person or entity submitting the request shall be responsible for its prompt delivery to City’s Contact Person identified in the Notice Inviting Bids.
Any interpretation or correction will be made only by Addendum issued by the City and a copy of such Addendum will be delivered to all Interested Bidders of record.
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Any Addenda so issued must be acknowledged in the Bid and the cost of performing Work described in the Addenda shall be included in the Bid. Bidder’s failure to acknowledge receipt of all Addenda may result in rejection of the Bid as nonresponsive. No person is authorized to render an oral interpretation or correction of any Bidding Documents and no Bidder may rely on any such oral interpretation or correction issued by the City. The City shall not be responsible for any other explanation or interpretation of the Drawings or Specifications, or for any oral instructions. City reserves the right to extend the Bid Deadline by issuing an Addendum to Interested Bidders no later than 72 hours prior to the Bid Deadline.
Bidders shall use complete sets of Bidding Documents in preparing Bids; City shall not assume responsibility for errors or misinterpretations resulting from the use of incomplete sets of Bidding Documents.
B. Addenda will be made available for inspection at
www.cityofvernon.org/planetbids. Each Bidder shall ascertain prior to submitting a Bid that the Bidder has received all Addenda issued and the Bidder shall acknowledge their receipt in the Bid.
3. 4.
OBTAINING DRAWINGS AND DOCUMENTS
Bidder may secure Bidding Documents only from the location specified in the Notice Inviting Bids. City will maintain a list of persons who obtained a copy of these Specifications (“Interested Bidders”). Only Interested Bidders will receive Addenda, if so issued.
BID FORMS – SUBMITTAL
A.
B.
The Bids shall be made on the forms provided herein with all blank spaces properly filled in.
The phraseology shall not be changed, and no additions shall be made to the items mentioned herein. Unauthorized conditions, exemptions, limitations, or provisions attached to a Bid will render it informal and may cause its rejection. All forms requiring specific information shall be completed with all applicable information for a Bid to be considered responsive.
C.
D.
Include all Bid Forms, properly executed, and intact on forms provided. Enclose the Bid Forms in a sealed envelope; type or print on the envelope "BIDS for" followed by the title and Specification Number and the date and time of the Bid Deadline, and the Bidder's name and address. The envelope may be mailed, hand delivered, or delivered by courier or package delivery service.
One Original Bid shall be hand delivered, delivered by courier or package delivery service to the Office of the City Clerk, City of Vernon, 4305 Santa Fe Avenue, Vernon, CA 90058.
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E. Bids received after the Bid Deadline or at any place other than the Office of the City Clerk will not be considered.
5. BID FORMS – AUTHORIZED SIGNATURES
A. The full name, business address, zip code, and business telephone number, with area code of the individual, partnership, joint venture, or corporation submitting the Bid shall be typewritten or legibly printed on the Bid Forms. The Bidder shall sign the form with his/her usual wet ink signature.
B.
C.
Sole Proprietorship: An individual shall sign.
Partnership (General or Limited): A partner shall sign for a partnership; the partner shall give the names and addresses of all partners.
D. Corporation: An officer shall sign for a corporation. The corporate name must be attested by the corporate seal. The names and titles of the president and all officers of the corporation who are authorized to sign the Bid Forms must be listed in an authenticated Incumbency Certificate signed by the corporate secretary.A signature other than a corporate officer’s will be accepted only if an authenticated Incumbency Certificate is attached.
E. Joint Venture: Bidders shall use the appropriate section(s) listed above in B-D, based on their applicable situation.
6. BID FORMS – SCHEDULE OF BID PRICES
A. The Bidder shall include in his/her Bid price(s) any and all expense or costs that may be necessary to complete the project in accordance with the requirements of the Contract. The cost of all mobilization, preparatory work and operations for the multiple movements of personnel, equipment, supplies, and incidentals to the various project sites must be included in the various bid items, and no extra compensation will be paid to Contractor.
B. The Bidder shall state for each item on the Schedule of Bid Prices form, in clearly legible figures, the Base Bid, the alternates, and the unit price and item total or lump sum, as the case may be, for which he/she proposes to supply labor, materials, and equipment and to perform the Work. Bids must not contain any erasures, interlineations, strike-throughs or other corrections unless the same are suitably authenticated by affixing in the margin immediately opposite such erasure or correction the initials of the person(s) signing the Bid. If any Bid, or portion thereof, is determined by the City to be illegible, ambiguous or inconsistent, City may reject such a Bid as being non-responsive.
C. In the case of a unit price item, the amount set forth, as the item total shall be the product of the estimated quantity times the unit price Bid. In the event of a discrepancy between the unit price Bid and the item total, the unit price shall
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prevail; however, if the unit price is ambiguous, unintelligible, or uncertain for any cause, or is omitted, or is the same amount as the entry for the item total, then the item total shall prevail and shall be divided by the estimated quantity for the item and the price thus obtained shall be the unit price. Where so indicated by the makeup of the Bid Form, sums shall be expressed in both words and figures, and in case of discrepancy between the two, the amount written in words shall govern.
D. All requested Alternates, if any, shall be Bid. See the Schedule of Bid Prices for more information and the list of Bid Alternates, if any. If no change in the Base Bid is required, enter “No Change.”
7. BID SECURITY
A.
B.
Each Bid shall be accompanied by cash or a cashier’s check or a certified check, drawn on a responsible bank doing business in the United States payable to the City, or a satisfactory Bid Bond in favor of the City executed by the Bidder as a principal and a California admitted surety company (as defined by California Code of Civil Procedure §§995.120 and 995.311) as surety (“Bid Security”).
All bonds must be issued by a California admitted surety insurer with the minimum A.M Best Company Financial strength rating of “A:VII” or better. Bonds issued by a California admitted surety not listed on Treasury Circular 570 will be deemed accepted unless specifically rejected by the City. Bonds issued from admitted surety insurers not listed in Treasury Circular 570 must be accompanied by all documents enumerated in California Code of Civil Procedure Section 995.660. All such bonds must be accompanied by a power of attorney from the surety company authorizing the person executing the bond to sign on behalf of the company. If the bonds are executed outside the State of California, all copies of the bonds must be countersigned by a California representative of the surety. The signature of the person executing the bond on behalf of Surety must be acknowledged by a Notary Public as the signature of the person designated in the power of attorney.
C. Bid Security shall be in an amount not less than 10% of the Base Bid. Any Bid submitted without Bid Security will be rejected as non-responsive. The Bid Security shall be given as a guarantee that the successful Bidder will execute the Contract and will provide the insurance, bonds and other required forms within fourteen (14) calendar days after award of the Contract. Bidders will be entitled to return of Bid Security except when a successful Bidder forfeits its Bid Security. A forfeit may occur, for example, if the successful Bidder withdraws its Bid prior to the expiration of ninety (90) calendar days after award of the Contract; attempts to withdraw its Bid when the requirements of Public Contract Code § 5101 et seq. are not met; or refuses or fails to execute the Contract and provide the required bonds, insurance or certificates within fourteen (14) calendar days after award of the Contract. In any one or more of these events, if City awards the Contract for the Work to the next lowest responsible Bidder, the amount of the original lowest Bidder’s security shall be applied to the Contract Price differential between the lowest Bid and the second lowest Bid. Any surplus will be returned to the original
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lowest Bidder. If the City rejects all other Bids presented and re-advertises, the lowest Bidder’s Bid Security may be used to offset the City’s cost of re-advertising and receiving new Bids. In that case, the surplus if any, will be returned to the original lowest Bidder.
D. The Bid Security shall be held for ninety (90) calendar days after the award of the Contract or until posting by the successful Bidder of the payment and performance bonds, proof of insurance, return of executed copies of the Contract and necessary certification(s), whichever first occurs, after which time the Bid Security will be returned to all Bidders.
E.
F.
If a Bid Bond is to be submitted, Bidder shall use the form entitled "Bid Bond" contained in the Bidding Documents, which Bid Bond shall be properly executed and acknowledged by the Bidder and by a corporate surety authorized to transact such business in the State of California.
Any alteration of said form of Bid Bond, or imperfection in the execution thereof, as herein required, will render it informal and may, at the option of the City, result in the rejection of the Bid under which the Bid Bond is submitted.
8. BIDDER'S AND SPECIALTY CONTRACTORS’ STATEMENTS OF
QUALIFICATIONS
A. Each Bidder shall be required to complete, execute and submit with its Bid, the form entitled "Bidder's Statement of Qualifications." Notwithstanding the provisions of Paragraph 22 herein, the Bidder’s Statement of Qualifications shall not be public records. All information required by a Bidder’s or Specialty Contractor Statement of Qualifications shall be completely and fully provided. If no information is to be filled in a blank space, then write "none." Any Bid not accompanied by a Bidder’s Statement of Qualifications form completed with all information required may render the Bid non-responsive. If the City determines that any information provided by a Bidder in the Bidder’s Statement of Qualifications is false or misleading, or is incomplete so as to be false or misleading, the City may reject the Bid submitted by such Bidder as being nonresponsive.
B. A responsible Bidder is a Bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience to satisfactorily perform fully the requirements of the contract documents. In selecting the lowest responsible Bidder, consideration will be given not only to the Bidder’s financial standing but also to the general competency of the Bidder for the performance of the work covered by the Bid including, but not limited to, the experience of the Bidder in construction of public buildings for public agencies. By submitting a Bid, each Bidder agrees that the City, in determining the successful Bidder and its eligibility for the award, may consider the Bidder’s experience with similar types of construction projects and facilities, conduct and performance under other
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contracts, financial condition, reputation in the industry, and other factors which could affect the Bidder’s performance of the work.
9. DESIGNATION OF SUBCONTRACTORS
A. Subcontractor Listing. On the Designation of Subcontractors form, the Bidder shall list each Subcontractor whom the Bidder must disclose under the Subletting and Subcontracting Fair Practice Act, Public Contract Code Section 4104. The Bidder shall provide: each Subcontractor’s name, the trade and type of work that the Subcontractor will perform, the location (address) of the Subcontractor’s place of business, each Subcontractor’s license number, each Subcontractor’s public works contractor registration number, and the dollar value of each Subcontractor’s labor or services. If additive Alternate Bid Items are included in the Bidding Documents, the Bidder shall identify each Subcontractor performing additive Alternate Bid Items, when such Work or the combination of base Contract Work and Alternate Work exceeds one-half of one percent of the total Bid Amount.
B.
C.
Subcontractors’ Licenses. At the time of the Bid Deadline and at all times during performance of the Work, each listed Subcontractor shall possess a current and active California Contractor’s license appropriate for the portion of the Work listed for such Subcontractor and hold all specialty certifications required for such Work.
Disqualification of a Subcontractor. The City has the right to review the suitability and qualifications of any Subcontractor proposed by the Bidder. As part of this review, the City may request a Bidder to submit additional information about one or more of the listed Subcontractors including, but not limited to a statement detailing the Subcontractor’s experience with pertinent information as to similar projects and other evidence of the Subcontractor’s qualifications. If requested, the Bidder shall provide the information to the City within the time specified in the City’s written request. After due investigation, if the City has a reasonable objection to any proposed Subcontractor, the City may, before giving the notice of award, require the apparent successful Bidder to submit an acceptable substitute.
The City’s disqualification of a Subcontractor does not disqualify a Bidder.
However, prior to and as a condition to award of the Contract, the successful Bidder shall substitute a properly licensed and qualified Subcontractor without an adjustment of the Bid Price.
D. Work of Subcontractors. The organization or arrangement of the Specifications and Drawings do not limit the extent of the Work for the Contract Documents.
Accordingly, all Bidders are encouraged to disseminate all of the Specifications, Drawings and other Contract Documents to all persons or entities submitting subbids to the Bidder. The omission of any portion or item of Work from the Bid or from sub-bids, which is reasonably inferable from the Contract Documents, will not be a basis for adjustment of the Contract Price or the Contract Time.
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E. Ineligible Subcontractors. The successful Bidder is prohibited from performing Work on the Project with any Subcontractor who is ineligible to perform work on a public works project pursuant to California Labor Code Sections 1777.1 or 1777.7. In submitting its Bid, the Bidder certifies that it has investigated the eligibility of each and every listed Subcontractor and has determined that none is ineligible to perform work pursuant to the above code provisions.
10. 11.
CONTRACTOR’S AFFIDAVIT OF NON-COLLUSION
An Affidavit of Non-Collusion in the form provided by the City shall be signed under penalty of perjury, certifying that the Bid is not the result of and has not been influenced by collusion. Bidder shall submit this form with its Bid. Any Bid made without such affidavit, or believed to be made in violation of the requirements set forth in the affidavit form, may be rejected.
INSURANCE REQUIREMENTS
The Bidder shall submit to its insurance company or insurance agent the Insurance Requirements in this Specification and the Contract Documents. The insurance company’s underwriter or agent must complete the Insurance Requirements documentation which states that the insurer’s underwriter or agent will furnish the City with the required insurance documents within fourteen (14) days after the Bidder’s having been notified of the Contract’s award. The Bidder shall submit this form with its Bid. Any Bid made without this statement, or made with an incomplete statement, may be rejected.
12. EXAMINATION OF DRAWINGS, SPECIFICATIONS, AND SITE OF WORK A. The Bidder shall examine carefully the site of the Work contemplated and the Drawings and Specifications. The submission of a Bid will be conclusive evidence that the Bidder has investigated and is satisfied as to the conditions to be encountered, as to the character, quality, and quantities of Work to be performed and materials to be furnished, the difficulties to be encountered, and to the requirements of the Drawings, Specifications, and other Contract Documents. The Bidder shall ascertain the locations of the existing utility services, and other underground facilities, and provide for carrying out its operations so as to cause the minimum possible inconvenience to the occupants of properties along any streets affected. All Work and costs involved in the safeguarding of the properties of others shall be at the expense of the Bidder to whom the Contract may be awarded.
B. The Bidder hereby certifies that it has examined the local conditions, has read each and every clause of the Contract Documents, and that it has included all costs necessary to complete the specified Work in its Bid prices, and the Bidder agrees that if it is awarded the Contract, it will make no claim against the City based upon ignorance of local conditions or misunderstanding of any of the provisions of the Contract. Should the conditions turn out otherwise than the Bidder anticipated, the Bidder agrees to assume all risks incident thereto.
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13. PRICES AND PAYMENTS
Approximate quantities listed in the Schedule of Bid Prices are estimates given for comparing Bids, and no claim shall be made against the City for excess or deficiency therein, actual or relative. Payment at the prices agreed upon will be in full for the completed Work and will cover materials, supplies, labor, tools, equipment, and all other expenditures incident to a satisfactory compliance with the Contract, subject to all applicable provisions in the Contract and General Conditions.
14. 15.
PERMIT FEES
If provided in the General Conditions, Contractor shall be reimbursed for the actual direct cost of all Permit Fees, as defined in Paragraph 1.01 and addressed in 1.03 of the General Conditions. Bidder shall exclude the cost of Permit Fees from Bidder’s Base Bid sum; Base Bid sum shall include the cost of administration and coordination for all Governmental Approvals and Utility Fees.
SUBSTITUTIONS
No requests for substitution of any material, device, product, equipment, fixture, form, or type of construction shall be considered by City prior to award of the Contract. Bidders shall submit all requests for substitution and substantiating data, within seven (7) calendar days from the date of the Notice to Proceed. Bidder shall refer to the appropriate provisions of the General Conditions for additional information regarding substitutions.
Authorization of a substitution is solely within the discretion of the City.
16. 17.
RETURN OF IMPROPER BIDS
Bids submitted after the Bid Deadline are non-responsive and shall be returned to the Bidder unopened. Oral, telephonic, telegraphic, facsimile or electronically transmitted Bids shall not be considered unless the Notice Inviting Bids expressly permits such means of transmittal.
WITHDRAWAL OF BIDS
Bidder may withdraw its Bid either personally or by written request any time prior to the scheduled Bid Deadline by notice to the City’s Contact Person designated in the Notice Inviting Bids. If such notice is written, it shall be signed by the Bidder and shall be datestamped and time-stamped by the City upon receipt. Withdrawn Bids may be resubmitted before the Bid Deadline provided that they are in full conformance with these Instructions to Bidders. Once submitted, all Bids are irrevocable, except as otherwise provided by law.
Requests for withdrawal of Bids after the Bid Deadline shall be made only in accordance with California Public Contract Code § 5100, et seq. Bidder agrees by submitting a Bid that such Bid shall remain open, is irrevocable, and may not be modified, withdrawn, or cancelled for a period of ninety (90) days after award of the Contract.
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18. OPENING AND EVALUATION OF BIDS
A. Bid Opening and Tabulation. The Bids shall be opened and read in public after the Bid Deadline has expired at the time and location listed in the Notice Inviting Bids. A tabulation of all Bids received will be available for public inspection at the Office of the City Clerk, 4305 Santa Fe Avenue, Vernon, CA 90058 during regular business hours for a period of not less than thirty (30) calendar days following the Bid Deadline. The City reserves the right to accept or reject any or all Bids and be the sole judge regarding the suitability of the products, services or supplies offered; and/or to waive any irregularities or informalities in any Bids or in the bidding process. The City further reserves the right to purchase all or fewer than all items or quantities of each item listed in the Bidding Documents. The award of the Contract, if made by the City, shall be to the lowest responsive and responsible Bidder. If Bid Alternate Items are called for, the lowest Bid shall be determined according to Paragraph 20 below.
B. Evaluation of Bids.
1. Mandatory Qualifications. A Bid shall be rejected as non-responsive if the Bidder fails to document in the Bid that Bidder meets the essential requirements for qualification described in the Notice Inviting Bids. As part of the Bidder’s Statement of Qualifications each Bidder must establish that it, as the current entity: (1) has successfully completed at least three (3) similar projects involving similar work within the last three (3) years with a cost equal to or in excess of the Bidder’s Bid; and (2) has successfully completed at least three (3) public works projects.
2. 3.
Responsive Bid. A responsive Bid is a Bid which conforms, in all material respects, to the Bidding Requirements and Contract Documents.
Responsible Bidder. A responsible Bidder is a Bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience to satisfactorily perform fully the requirements of the Contract Documents.
4. Competency of Bidders. In selecting the lowest responsible Bidder, consideration will be given not only to the financial standing but also to the general competency of the Bidder for the performance of the Work covered by the Bid including, but not limited to, the experience of the Bidder in construction of public works for public agencies. By submitting a Bid, each Bidder agrees that the City, in determining the successful Bidder and its eligibility for the award, may consider the Bidder’s experience with similar types of construction projects and facilities, conduct and performance under other contracts, financial condition, reputation in the industry, safety record and protocols and other factors which could affect the Bidder’s performance of the Work.
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19. 20.
AWARD OF CONTRACT
The City reserves the right to reject any or all Bids and to waive any or all information or technical defects, as the interest of the City may require. Award of Contract or rejection of Bids will be made by the City within ninety (90) calendar days following the Bid Opening.
BASIS OF AWARD
A.
B.
A Contract will be awarded to the lowest responsive and responsible Bidder meeting all requirements set forth in these Bidding Documents.
City reserves the right in its sole discretion to select any, all, or none of the Bid Alternates at the time of award of the Contract, regardless of whether such Bid Alternates were used in the analysis to determine the lowest Bid.
21. EXECUTION OF CONTRACT
Within fourteen (14) calendar days after being notified by City that it has been awarded the Contract, Contractor shall deliver to the City the following documents:
A.
B.
C.
One executed Contract in the form included herein, properly executed by Contractor and, if Contractor is a corporation, evidence of its corporate existence and that the persons signing the Contract are authorized to do so. All signatures must be notarized.
Properly executed copies of the (a) Performance Bond, (b) Labor and Material (Payment) Bond and (c) Maintenance Bond in accordance with the requirements set forth in Article 13 of the General Conditions and in the form shown on Exhibits 1, 2 and 3 attached thereto. All signatures must be notarized.
Properly executed policies of all of the following: (a) the Commercial General Liability Insurance, (b) the Automotive Liability Insurance, and (c) Professional Liability, if required, and (e) the corresponding endorsements for each policy in accordance with the requirements set forth in Article 12 of the General Conditions.
In the event that the fourteenth calendar day falls on Saturday, Sunday, a legal holiday for the State of California, or on days when City Hall is closed, the aforesaid documents shall be delivered by the following working day.
After receipt of said documents within said time period or any extension thereof granted by the City, the City shall execute the Contract and return a fully executed copy to Contractor for its files.
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22. PUBLIC RECORDS
City seeks to conduct its business openly. Except as set forth in paragraph 8.A., upon opening, all Bids shall become a matter of public record and shall be regarded as public, with the exception of those elements of each Bid that are identified by the Bidder and plainly marked as “trade secret,” “confidential,” or “proprietary,” including any Statement of Qualifications and financial statements to be submitted by Bidders. Each element of a Bid which a Bidder desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e. regarding entire pages, documents, or other, non-specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If City receives a request from a third party to make a Bid available for inspection and copying, the City will notify the Bidder of the request. If a Bidder instructs the City that the information is not to be released, City will withhold the information, provided, the Bidder expeditiously seeks a protective order from a court of competent jurisdiction to prevent such release. If disclosure is required under the California Public Records Act or otherwise by law (despite the Bidder’s request for confidentiality), the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof.
Bidder shall indemnify, defend (including Bidder’s providing and paying for legal counsel for City), and hold harmless City, its officers, agents, employees, and representatives from and against all liability, claims, suits, demands, damages, fines, penalties, costs, or expenses arising out of or alleging City’s refusal to publicly disclose one or more records that Bidder identifies as protectable, or asserts is protectable.
23. PREVAILING WAGE RATES AND EMPLOYMENT OF APPRENTICES A. Prevailing Wage Rates. The Bidder and all Subcontractors shall utilize the relevant prevailing wage rate determinations in effect on the first advertisement date of the Notice Calling for Bids in preparing the Bid Proposal and all component price quotations, provided, however, that when Davis Bacon wage rates apply, such rates are subject to increase by written notice, issued by Addendum not less than 10 calendar days before the Bid Deadline. Pursuant to California Labor Code Section 1770 et seq., the Director of the Department of Industrial Relations of the State of California and the United States Secretary of Labor have determined the general prevailing wage rates in the locality in which the Work is to be performed. Said rate schedules are available from the City at its Public Works Department, which shall be made available to any interested party upon request; or on the Internet at www.dir.ca.gov/DLSR/PWD/. The wage rate for any classification not listed, but which may be required to execute the Work, shall be commensurate and in accord with specified rates for similar or comparable classifications for those performing similar or comparable duties. To comply with California Labor Code Section 1773.2, Contractor shall post, at appropriate and conspicuous locations on the job site, a schedule showing all applicable prevailing wage rates and shall also comply with the requirements of California Labor Code Sections 1773 et seq.
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B. Apprenticeship Committee Contract Award Information. Pursuant to California Labor Code § 1777.5 and Title 8 of the California Code of Regulations § 230, Contractor and Subcontractors of any tier who are not already approved to train by an apprenticeship program sponsor shall, within ten (10) calendar days of signing the Contract or subcontract, as applicable, but in any event prior to the first day in which Contractor or Subcontractor has workers employed on the Project, submit the Public Works Contract Award Information form (DAS Form 140) to the appropriate local apprenticeship committees whose geographic area of operation include the area of the Project and who can supply apprentices to the Project. City reserves the right to require Contractors and Subcontractors to submit a copy of said forms to the City.
C. Statement of Employer Fringe Benefit Payments. Within five (5) calendar days of signing the Contract or subcontract, as applicable, the Statement of Employer Payments (DLSE Form PW 26) shall be completed for each Contractor and Subcontractor of any tier who pays benefits to a third party trust, plan or fund for health and welfare benefits, vacation funds or makes pension contributions. The form must contain, for each worker classification, the fund, plan or trust name, address, administrator, the amount per hour contributed and the frequency of contributions. Training fund contributions shall also be reported in this form. City reserves the right to require Contractors and Subcontractors to submit a copy of said forms to the City.
D. Notice to Subcontractors. Bidders shall notify all potential Subcontractors submitting price quotations for portions of the Work of the requirements concerning payment of prevailing wage rates, payroll records, hours of Work, and employment of apprentices.
24. REGISTRATION WITH THE DEPARTMENT OF INDUSTRIAL RELATIONS (DIR)
No contractor or subcontractor may be listed on a bid proposal for a public works project unless currently registered and qualified (including payment of any required fee) with the DIR pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]. No contractor or subcontractor may be awarded a contract for public work on a public works project unless currently registered and qualified (including payment of any required fee) with the DIR pursuant to Labor Code section 1725.5. This project is subject to compliance monitoring and enforcement by the DIR.
25. SPECIAL CITY REQUIREMENTS
Special City forms and their instructions are an integral part of these specifications and failure to submit same may be grounds, in the sole discretion of the City, for rejection of any Bidder.
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A. Prevailing Wage Where Applicable. Upon request, certified payroll documents shall be provided to the City.
B. Equal Employment Opportunity in Contracting. The City of Vernon is committed to a policy of equal opportunity in contracting. Qualified firms including small businesses and businesses owned by women, minorities, and disabled persons are encouraged to submit bids or proposals. Contractors expressly agree to comply with the City’s ordinances and regulations regarding Equal Opportunity Employment as well as regulations that may be mandated by the source of the funds supporting the Contract. Contractor certifies and represents that during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their age not discriminated against because of their race, religion, religious belief, color, national origin, citizenship, ancestry, disability, sex, age, medical condition, pregnancy, sexual orientation or marital status. Contractor certifies that it will not maintain any segregated facilities.
Contractor shall comply with all applicable Federal and California laws including, but not limited to, the California Fair Employment and Housing Act (California Government Code Section 12900, et seq.), California Labor Code Section 1735, and The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
Contractor shall require like compliance by all Subcontractors employed on the Work.
26. BID PROTEST PROCEDURES
A. Any Bidder submitting a Bid directly to the City and eligible for award of the Contract may file a protest if the Bidder complies with all of the following requirements and conditions:
1. The Bid protest is in writing;
2. A protest based upon alleged defects or improprieties in the Contract Documents is filed with the City prior to the Bid Deadline;
3. All other protests are to be filed and received by the City no more than five (5) calendar days following the City’s notice of intent to award the Contract; and
4. The written Bid protest sets forth, in detail, all grounds for the Bid protest, including without limitation: all facts, supporting documentation, legal authorities, and argument in support of the grounds for the Bid protest. All factual contentions must be supported by competent, admissible, and credible evidence.
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B.
C.
Any matters not set forth in the written Bid protest will be deemed waived. Any Bid protest not conforming to the foregoing requirements and conditions will be rejected by the City as invalid.
Bid Dispute Indemnification. In the event of a Bid dispute based upon the Bidder’s submission of this Bid and the City acceptance of same, the Bidder shall indemnify, defend (with counsel acceptable to City), and hold harmless the City, its City Council members, employees, and agents from liability, claims, demands, damages, and costs arising therefrom if such dispute or action arises solely upon the award of a Contract in compliance with federal, state, and local laws. [END OF DOCUMENT]
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BIDDING FORMS
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February 29, 2024
Via Planetbids
NOTICE TO BIDDERS – ADDENDUM No.1
CITYWIDE TRAFFIC SIGNAL MAINTENANCE & REPAIR FY2024
CONTRACT No. 20240283
This notice shall be considered as Addendum No. 1 to the Specifications for the abovementioned project and modifies the original Specifications and Contract Documents as noted below. Portions of the Contract, not specifically mentioned in the Addendum, remain in force.
Contract Specifications:
1. “SCHEDULE OF BID PRICES”, Page 31-35 shall be replaced with the attached updated sheets.
If you have any questions, please contact Lissette Melendez of my staff at [email protected].
Sincerely,
Daniel Wall, P.E.
Director of Public Works
Enclosures
Public Works Department
4305 Santa Fe Avenue, Vernon, CA, 90058
CityofVernon.org
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SCHEDULE OF BID PRICES
PROJECT: Citywide Traffic Signal Maintenance & Repair FY2024, Contract No. 20240283 BIDDER’S NAME: _________________________________________________
BASE BID
Pursuant to and in compliance with your Notice Inviting Bids and Contract Documents relating to the Project including all Addenda (attach signed copies), Bidder, having become thoroughly familiar with the terms and conditions of the Contract Documents and with local conditions affecting the performance and the costs of the Work at the place where the Work is to be done, hereby proposes and agrees to fully perform the Work within the time stated in strict accordance with the Contract Documents (including the furnishing of any and all labor, materials, tools, expendable equipment, and utility and transportation services necessary to fully perform the Work and complete it in a workmanlike manner) for the total Base Bid sum of:
________________________________________________ Dollars Proposed Construction Costs Breakdown
($_____________________)
SECTION I – ROUTINE MAINTENANCE
Unit Price Per
Month
Total Cost
Per Year Item No. 1
Description Unit Qty
EA 42 Routine Maintenance-Inspection and Cleaning
per Attachment “C”
$$
SECTION II- EXTRAORDINARY MAINTENANCE
A. Material: Contractor’s cost for the supply plus (+) 15% per the Green Book B. Labor: Contractor’s hourly rates (including all fringe benefits, markup, overhead, etc.) for all job classifications involved in extraordinary maintenance.
C. Regular timer hours are Monday – Friday 7:00AM – 4:00PM (excluding Holidays). Overtime hours are Monday – Friday 4:00PM – 7:00AM, Weekend and Holidays
Bid
Item
No.
Hours
Per
Year 5
Total Cost
Per Year Classification Title
Operations Superintendent
Unit Straight Time
2345678HR
HR
HR
HR
$$$$$$$$$$$$$$
Foreman5
Engineering/Systems Technician
Laboratory Technician
10 10
80 80
30 Traffic Signal Technician- Lead (IMSA Level III Certified) HR Traffic Signal Technician- (IMSA Level II Certified)
Utility Technician
HR
HR
SUBTOTAL FOR BID ITEMS NO. 2 THROUGH NO. 8 $ _____________________________________
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Bid
Item
No.
Hours
Per
Year
Total Cost
Per Year Classification Title
Operations Superintendent
Unit Overtime
9 HR
HR
HR
HR
5$$$$$$$$$$$$$$
10 Foreman5
11 Engineering/Systems Technician
12 Laboratory Technician
10 10
80 80
30 13 Traffic Signal Technician- Lead (IMSA Level III Certified) HR 14 Traffic Signal Technician- (IMSA Level II Certified) 15 Utility Technician
HR
HR
SUBTOTAL FOR BID ITEMS NO. 9 THROUGH NO. 15
Bid
$ _____________________________________
Qty Total Cost
Per Year Item
No.
Labor and Material Unit Per Unit Price
Year
16 Install 6’ diameter traffic loop (4 or less)
17 Install 6’ diameter traffic loop (more than 4)
18 Furnish and Install 6’ diameter bike loop (4 or less) 19 Furnish and Install 6’ diameter bike loop (more than 4) 20 Furnish and Install No. 5 pullbox
EA
EA
EA
EA
EA
EA
EA
EA
12 12
12 124
$$$$$$$$$$$$$$$$
21 Furnish and Install No. 6 pullbox4
22 Furnish and Install No. 5 pullbox lid4
23 Furnish and Install No. 6 pullbox lid4
Furnish and install LED Countdown Pedestrian Head-
(Dialight) 24 EA
EA
EA
EA
EA
12 108
$$$$$$
25 Furnish and install ADA push button.
$
Furnish and install ADA push button assembly complete
with signs. 26
$
27 Furnish and install pedestrian push button post4$$
Furnish and install handhole cover (Small Plastic oval or rectangular).
Furnish and install handhole cover (Small Galvanized oval or rectangular).
Furnish and install handhole cover (Large Plastic oval or rectangular).
28 29
30 31
4 EA
EA
48$$$$
Furnish and install handhole cover (Large Galvanized oval or rectangular). EA
EA
84$$$
32 Furnish and install 3 section 12” head on shaft
$
33 Furnish and install 5 section 12” head on shaft
34 Furnish and install 3 section 12” head on mast arm
EA
EA
22$$$$
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Furnish and install 5 section 12” doghouse with mast arm mount 35 EA
2$$
36 Furnish and install 12” Tunnel Visor EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
44$$$$$$$$$$$$$$$$$
37 Furnish and install NEMA conflict monitor
38 Furnish and install 24 volt power supply
4 39 Furnish and install 12” LED Red Ball (Dialight)
40 Furnish and install 12” LED Yellow Ball (Dialight)
41 Furnish and install 12” LED Green Ball (Dialight)
42 Furnish and install 12” LED Red Arrow (Dialight)
43 Furnish and install 12” LED Yellow Arrow (Dialight)
44 Furnish and install 12” LED Green Arrow (Dialight)
45 Furnish and install 72”x18” ISNS Panel (Green/White) 46 Install City furnished regulatory sign on signal mast arm 47 Replace Type 1-A (10’) pole.
248
$
244$$$$$$$$
24 12
504
48 Adjust alignment of signal head on mast arm.4
Furnish and install Type 332 cabinet. Cabinet and auxiliary 49 equipment shall conform to Caltrans specifications.
(8-phase intersection. Weekend Work)
Furnish and install Type P1 or M1 cabinet. Cabinet and
50 auxiliary equipment shall conform to Caltrans
specifications. (8-phase intersection. Weekend Work)
EA
EA
22$$$$
51 Furnish and install 170 ATC McCain controller
52 Furnish and install Cobalt Controller
EA
EA
EA
EA
EA
EA
22$$$$$$$$$$$$
53 Furnish and install model 2070LX Controller
54 Furnish and install Retroreflective Signal Backplate 55 90-Degree Elbow for vehicle signal
2 50
10 56 Conduct Safety Light and ISNS Night Survey (Monthly) 12 SUBTOTAL FOR BID ITEM NO. 16 THROUGH NO. 56 (LABOR & MATERIAL) $ ___________________________
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Bid
Item
No.
Qty. Per
Year
Total Cost
Per Year Equipment Unit Unit Price
57 58
59 60
61 62
63 Service Truck TRIP
TRIP
TRIP
TRIP
TRIP
TRIP
TRIP
80 1205
$$$$$$$$$$$$$$
Bucket Truck
Hydraulic Boom Truck
Compressor with tools
Crane Truck
55 Concrete Saw5
Towable Arrow Board5
SUBTOTAL BID ITEM NO. 57 THROUGH NO. 63 (EQUIPMENT) $ __________________________
SECTION III- CONTRACT PROPOSAL COST SUMMATIONS
GRAND TOTAL BID ITEMS NO. 1 THROUGH NO 63 (USED FOR BID PURPOSES ONLY):
Dollars ($______________________)
Written Dollar Amount (Also, enter Total at top of page 32) Bid is for comparison purposes. Actual pay to the Contractor for emergency work will be based on actual time and materials based on unit prices provided. All unit prices shall include all overhead costs and profits.
All other work items, labor, materials, tools and incidentals which are not specifically listed in the above bid items, but are necessary to complete the project per specifications, and all other applicable standards and codes are considered to be included in the above bid items.
If there is a discrepancy between (1) the “Grand Total” shown immediately above, (2) any of the “total costs” shown in the far right column above, or (3) the individual Unit Price, then the Unit price shall control over the total cost, and the total cost shall control over the total. If, however, the unit price is ambiguous, unintelligible, or uncertain for any cause, or is omitted, or is the same amount as the entry for the item total, then the item total shall prevail and shall be divided by the estimated quantity for the item and the price thus obtained shall be the unit price.
Bidder shall exclude the cost of Permit Fees from Bidder’s Base Bid sum; Base Bid sum shall include the cost of administration and coordination of Governmental Approvals and Utility Fees.
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Respectfully submitted:
Signature
Title
Address
Date
License Number Date of Expiration
(SEAL – if Bid is by a corporation)
Attest:
Amount of Certified or Cashier’s Check or Bid Bond $
Name of Bonding Company:
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City Council Agenda Report
Meeting Date: April 16, 2024
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Gerard Garcia, Assistant Engineer
Subject
Notice of Completion for Contract No. 20240122 Gifford Avenue, 48th, 49th, & 50th Street Improvements
Recommendation
A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of existing streets and involves negligible or no expansion of an existing use;
B. Accept the work of Hardy & Harper, Inc. as related to City Contract No. 20240122; and C. Authorize the Director of Public Works to execute and submit the Notice of Completion for the project to the Los Angeles County Recorder’s Office.
Background
On January 16, 2024, the City Council awarded City Contract No. 20240122 Gifford Avenue, 48th, 49th, & 50th Street Improvements in the amount of $792,000, including a 10% contingency.
The final construction cost was $755,845.38. This project involved installing thick asphalt concrete in one lift along Gifford Avenue, 48th, 49th, and 50th Street. In addition, the project included the construction of ADA ramps, a new curb and gutter, and the construction of tree wells.
City Contract No. 20240122 was completed and accepted on March 4, 2024, in accordance with the project specifications and City Staff expectations.
The Notice of Completion was approved as to form by the City Attorney’s office.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. Notice of Completion – Contract No. 20240122 ..
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RECORDING REQUESTED BY AND WHEN
RECORDED, RETURN TO:
City of Vernon
Attention: City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE
For the benefit of City of Vernon
No fee per Government Code Section 27383 APN: N/A
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT, PURSUANT TO CIVIL CODE SECTION 9024:
1. The undersigned is the owner, or corporate officer of the owner, of the interest or estate below in the property hereinafter described.
2. The full name of the owner is: The City of Vernon.
3. The full address of the owner is: 4305 Santa Fe Avenue, Vernon, CA 90058.
4. The nature of the interest or estate of the owner is: In Fee.
5. A work of improvement on the property hereinafter described was completed and accepted on March 4, 2024. The work done was: Gifford Avenue, 48th,49th, and 50th Street Improvements, Contract No. 20240122.
6. The name of the contractor, if any, for such work of improvement was Hardy & Harper, Inc.
The property on which said work of improvement was completed is in the City of Vernon, County of Los Angeles, State of California, and is described as follows: Project involved installing thick asphalt concrete in one lift along Gifford Avenue, 48th, 49th, and 50th Street. In addition, the project included the construction of ADA ramps, a new curb and gutter, and the construction of tree wells.
Dated: April 16, 2024
I, Daniel Wall, Director of Public Works, verify the foregoing Notice of Completion on behalf of the City of Vernon; I have read said Notice and know the contents thereof; and I have personal knowledge of the facts stated herein. I declare under penalty of perjury that the foregoing is true and correct. _______________________________
Daniel Wall, Director of Public Works
On __________, before me, Yonnie Parker, Deputy City Clerk for the City of Vernon, personally appeared Daniel Wall, Director of Public Works for the City of Vernon, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ..
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upon behalf of which he acted, executed the instrument.
WITNESS my hand and official seal.
_________________________________
Yonnie Parker, Deputy City Clerk ..
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City Council Agenda Report
Meeting Date: April 16, 2024
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Letter Agreement with Southern California Edison Company Recommendation
A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, because the work being approved by this Letter Agreement (Phase 1) consists of engineering and materials procurement that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines Section 15378. Upon completion of Phase 1, a separate Letter Agreement will be presented to City Council for the construction portion of this project (Phase 2); B. Approve and authorize the City Administrator to execute a Letter Agreement with Southern California Edison Company (SCE), in substantially the same form as submitted, for SCE to perform required engineering and procurement work related to Interconnection Facilities, Distribution Upgrades, and Network Upgrades, in an amount not-to-exceed $14,024,895; and C. Authorize a contingency amount of five percent (5%) or $701,245 for unforeseen changes in fees or other expenses not included in the proposal, and grant authority to the City Administrator to issue change orders for an amount up to the contingency amount, if necessary.
Background
The City is proposing to provide new electric service to several large commercial projects under development, which requires that up to 150 megawatts of new electric load be constructed at different locations in Vernon. The potential new electric loads will demand service from the City’s 66kV sub-transmission system that is interconnected with the Southern California Edison Company (SCE) Laguna Bell Substation (the Project).
In accordance with the Laguna Bell – Vernon Interconnection Service Agreement (IA), adopted on September 16, 1997 via Resolution No. 7017, Vernon Public Utilities (VPU) submitted a request to SCE for Interconnection Service and Transmission Service. Although the service request was made under the existing IA, SCE concluded that a System Impact Study and a Facilities Study were required to determine the adequacy of SCE’s electrical system including, but not limited to, the portion of SCE’s electrical system that is part of the California Independent System Operator (CAISO) Grid. Accordingly, on September 20, 2022, the City entered into the Laguna Bell-Vernon Interconnection Service Agreement Combined System Impact and Facilities Study Agreement with SCE. SCE has completed the study, and the Interconnection Facilities Study Report (Report) was published on September 7, 2023.The Report detailed the upgrades that are necessary for the SCE system which will be performed in two phases to accommodate the new electric load, and will include enhancements to facilities at the Laguna Bell Substation and two new sub-transmission source lines from SCE’s Laguna Bell Substation to the City boundaries.
In the interest of working towards the goal of increasing the City’s electric load capacity to feed potential new development projects, staff recommends that SCE commence work recommended by the Report. Phase 1 of the Project consists of the engineering and material procurement by SCE for which the City will pay for specified portions (as described in Exhibit C, Payment, and ..
Item 10 Page 1 of 2
Financial Security Schedule, of the Letter Agreement). The estimated cost to complete the necessary work in Phase 1 is $14,024,895, and the City will make eighteen (18) monthly payments to SCE for Phase 1.
Upon completion of SCE’s engineering and procurement activities, the City will move into Phase 2 of the Project and will be required to enter into a separate Agreement with SCE for the construction portion of the Project which is expected to be presented to the City Council in March 2025. The cost for the construction in Phase 2 of the Project will be determined based on SCE’s engineering and design activities of Phase 1. VPU staff has addressed the Project funding for Phase 1 as part of the Fiscal Year 2024-25 budget process. Pursuant to Vernon Municipal Code Sections 3.32.110 (A)(2) and 3.32.110 (B)(1), the proposed work is exempt from competitive bidding and competitive selection, as SCE is the City’s transmission service provider and the engineering and procurement work related to Interconnection Facilities, Distribution Upgrades, and Network Upgrades can only be performed by SCE.
The SCE Letter Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $14,726,140, including the five percent contingency. Sufficient funds of $2,366,804 are available in Electric Fund, Engineering Department, Capital Outlay Account No. 055-050-585-660000 for the current fiscal year (FY) and remaining project costs will be budgeted in FY 2024-25 and FY 2025-26.
Attachments
1. SCE - Letter Agreement ..
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1 Title Page
Southern California Edison Company FERC FPA Electric Tariff Tariff Title: Wholesale Distribution Access Tariff
Tariff Record Title: Service Agreement No. XXX
LETTER AGREEMENT
BETWEEN
CITY OF VERNON
AND
SOUTHERN CALIFORNIA EDISON COMPANY
PROJECT: DATA CENTERS TWO (SCE EAK048 AND SCE WDT1810EXP) Contract Effective Date: xx/xx/xx Tariff Record Proposed Effective Date: xx/xx/xx 905.xxx.x Version Number: 0.0.0
EAK048 AND WDT1810EXP Option Code: A ..
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2 LETTER AGREEMENT
April 8, 2024
Carlos R. Fandino
City Administrator
City of Vernon
Vernon Public Utilities
4305 Santa Fe Avenue Vernon, CA 90058
Re: Letter Agreement for the Data Centers Two Project EAK048 and WDT1810EXP Mr. Fandino:
City of Vernon (“Interconnection Customer”) is proposing to construct and operate the Data Centers Two Project (“Project”), consisting of a 150 MW load project sited at three different locations within the City of Vernon service area. Each of the three new sites will have a 50 MW load, totaling 150 MW.
On May 12, 2022, Interconnection Customer submitted a load Interconnection Request to Southern California Edison Company (“SCE”), requesting to interconnect the Project at SCE’s existing Laguna Bell 66 kV Substation. Interconnection Customer’s load Interconnection Request was received by SCE on May 12, 2022. It describes the projected amount of load growth, the general location of the load, and the estimated in-service date for each load (“Data Centers Two Project Load Request”). Based on the Data Centers Two Project Load Request, SCE performed a Method of Service Study and provided Interconnection Customer with a Method of Service Study Subtransmission Assessment dated March 6, 2023, which describes the impacts to SCE’s electrical system from the Interconnection Customer’s Data Centers Two Project Load Request (“Method of Service Study Report”). As a result of the findings identified in the Method of Service Study Report, SCE performed an Interconnection Facilities Study and provided Interconnection Customer with areport dated September 7, 2023, which estimates the scope, cost and installation schedule of the required mitigations needed to accommodate the load requirements of the Project (“Interconnection Facilities Study Report”). The Method of Service Study Report and the Interconnection Facilities Study Report were provided to Interconnection Customer on September 7, 2023.
All capitalized terms used herein which are, not otherwise defined, shall have the meaning ascribed to that term in Section 2 of, or Attachment I to the SCE Wholesale Distribution Access Tariff (“WDAT”)(“GIP”)
1 . Interconnection Customer and SCE are sometimes referred to herein individually as “Party” and collectively as “Parties.” 1 While the instant Agreement uses certain capitalized terms defined in the Generator Interconnection Procedures (“GIP”) Attachment to SCE’s WDAT, both Parties understand that the Project is a load interconnection project, not a generation interconnection project. ..
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3 In the interest of working towards the achievement of Interconnection Customer’s expected operating date for the Project, as set forth in Exhibit D (Milestones), Interconnection Customer desires for SCE to commence certain engineering and design work prior to executing an Interconnection Facilities Agreement (“IFA”). Accordingly, the purpose of this letter agreement (“Agreement”) sets forth the terms and conditions of an interim arrangement pursuant to which SCE will perform, and Interconnection Customer will pay for, certain Work, as described herein:
1. Work. SCE will perform the Work, as described in Exhibit A, upon payment by Interconnection Customer of amounts described in Section 2 and according to the terms provided herein. SCE shall perform the Work only after receipt of the payments and Financial Security set forth in Exhibit C, as may be modified by Section 2.2 and any applicable Milestones set forth in Exhibit D. The Interconnection Customer acknowledges and understands that upon completion of the Work described in Exhibit A, additional Network Upgrades, Interconnection Facilities and/or Distribution Upgrades may be necessary to enable operation of the Project, and such will be included in the IFA contemplated by the Parties.
2. Payments and Financial Security
2.1. Payments/Financial Security. In order for SCE to perform its obligations under the terms and conditions of this Agreement, Interconnection Customer shall provide to SCE the payments and Financial Security, in such estimated amounts as set forth in Exhibits B and C (as may be modified as described in Section 2.2) and in such form and on such dates as set forth in Exhibit C. SCE will provide Interconnection Customer an invoice of such payment obligations, which must be paid by the payment dates set forth in Exhibit C.
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4 2.2. Additional Amounts. SCE shall notify Interconnection Customer in writing within a reasonable time if SCE learns that charges and expenses are likely to exceed the estimated amounts specified in Exhibit B, warranting adjustments to amounts in Exhibit C. In the event of such notification, SCE shall specify the payment and corresponding Financial Security increase(s) and Interconnection Customer shall pay such additional amounts within thirty (30) Calendar Days of receipt of an invoice for such additional amounts. The Parties will agree to amend the Agreement in order to reflect and collect the additional amounts required, subject to FERC’s approval, as applicable, before an invoice for the additional amounts is issued to the Interconnection Customer.
2.3. Failure to Pay; Insolvency. Subject to Section 3.2, in the event that Interconnection Customer fails to provide payment for amounts incurred or irrevocably committed to be incurred, or fails to provide Financial Security, pursuant to this Agreement, SCE may (a) immediately stop Work; (b) draw on the Interconnection Financial Security for any amounts due to SCE during the term of this Agreement, and/or (c) terminate this Agreement by written notice of cancellation effective upon FERC approval. In the event that Interconnection Customer (i) is dissolved; (ii) becomes insolvent; (iii) becomes the subject of a petition in bankruptcy, either voluntary or involuntary, or in any other proceeding under federal bankruptcy laws; (iv) makes an assignment for the benefit of creditors, excluding any assignment for financing purposes; (v) is named in a suit for the appointment of a receiver, SCE may, in addition to (a) through (c) above, ..
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5 draw on the Tax Security (as defined in the IFA) for any tax liability imposed on SCE during the term of this Agreement.
3. Dispute. Disputes arising out of or in connection with this Agreement shall be resolved as follows:
3.1. Submission. In the event either Party has a dispute, or asserts a claim, that arises out of or in connection with this Agreement or its performance, such Party (the “disputing Party”) shall provide the other Party with written notice of the dispute or claim (“Notice of Dispute”). Such dispute or claim shall be referred to a designated senior representative of each Party for resolution on an informal basis as promptly as practicable after receipt of the Notice of Dispute by the other Party. In the event the designated representatives are unable to resolve the claim or dispute through unassisted or assisted negotiations within thirty (30) Calendar Days of the other Party’s receipt of the Notice of Dispute, such claim or dispute may, upon mutual agreement of the Parties, be submitted to arbitration and resolved in accordance with the arbitration procedures set forth below. In the event the Parties do not agree to submit such claim or dispute to arbitration, each Party may exercise whatever rights and remedies it may have in equity or at law consistent with the terms of this Agreement.
3.2. Payment Dispute. In the event of a billing dispute between SCE and the Interconnection Customer, SCE shall continue to perform the Work under this Agreement as long as the Interconnection Customer: (i) continues to make all payments not in dispute; and (ii) pays to SCE or into an independent escrow account the portion of the invoice in dispute, pending resolution of such dispute. ..
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6 If the Interconnection Customer fails to meet these two requirements for continuation of service, then SCE may invoke remedies in Section 2.3. Within thirty (30) Calendar Days after the resolution of the dispute, the Party that owes money to the other Party shall pay the amount due with interest calculated in accordance with the methodology set forth in FERC's Regulations at 18 C.F.R. §
35.19a(a)(2)(iii).
3.3. External Arbitration Procedures. Any arbitration initiated under this Agreement shall be conducted before a single neutral arbitrator appointed by the Parties. If the Parties fail to agree upon a single arbitrator within ten (10) Calendar Days of the submission of the dispute to arbitration, each Party shall choose one arbitrator who shall sit on a three-member arbitration panel. The two arbitrators so chosen shall within twenty (20) Calendar Days select a third arbitrator to chair the arbitration panel. In either case, the arbitrators shall be knowledgeable in electric utility matters, including electric transmission and bulk power issues, and shall not have any current or past substantial business or financial relationships with any party to the arbitration (except prior arbitration).
The arbitrator(s) shall provide each of the Parties an opportunity to be heard and, except as otherwise provided herein, shall conduct the arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“Arbitration Rules”) and any applicable FERC regulations; provided, however, in the event of a conflict between the Arbitration Rules and the terms of Section 3, the terms of this Section 3 shall prevail.
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7 3.4. Arbitration Decisions. Unless otherwise agreed by the Parties, the arbitrator(s) shall render a decision within ninety (90) Calendar Days of appointment and shall notify the Parties in writing of such decision and the reasons therefor. The arbitrator(s) shall be authorized only to interpret and apply the provisions of this Agreement and shall have no power to modify or change any provision of this Agreement in any manner. The decision of the arbitrator(s) shall be final and binding upon the Parties, and judgment on the award may be entered in any court having jurisdiction. The decision of the arbitrator(s) may be appealed solely on the grounds that the conduct of the arbitrator(s), or the decision itself, violated the standards set forth in the Federal Arbitration Act or the Administrative Dispute Resolution Act. The final decision of the arbitrator must also be filed with FERC if it affects jurisdictional rates, terms and conditions of service, or Interconnection Facilities.
3.5. Costs. Each Party shall be responsible for its own costs incurred during the arbitration process and for the following costs, if applicable: (1) the cost of the arbitrator chosen by the Party to sit on the three-member arbitration panel and one half of the cost of the third arbitrator chosen; or (2) one half the cost of the single arbitrator jointly chosen by the Parties.
4. Milestone Schedule. The milestone schedule is attached as Exhibit D. SCE shall use commercially reasonable efforts to complete the Work in accordance with this schedule; however, SCE does not warrant the Work will be completed in time to meet such deadlines, and Interconnection Customer understands and acknowledges that such deadlines are only ..
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8 estimates and that the due dates in Exhibit D are dependent on Interconnection Customer coordinating with SCE to complete the milestones as specified in a timely manner. SCE shall not be liable for any cost or damage incurred by Interconnection Customer as a result of or due to any delay in the completion of the Work pursuant to the milestone schedule.
5. Termination.
5.1. Except for terms that survive termination, this Agreement shall terminate upon the earliest of the following to occur: (i) notice that this Agreement is not accepted for filing by FERC, if applicable; (ii) the effective date of the IFA, which the Parties intend to supersede this Agreement; (iii) the Interconnection Customer’s receipt of SCE’s notice of cancellation pursuant to Section 2.3, which is subject to acceptance by FERC; (iv) two (2) Business Days after receipt by SCE of a termination notice from Interconnection Customer to SCE at any time and for any reason; or (v) withdrawal of the Interconnection Customer’s Interconnection Request for the Project.
5.2. In the event that either Party terminates this Agreement for reasons other than the execution of the IFA, SCE shall use commercially reasonable efforts to mitigate the costs, damages, and charges arising as a consequence of such termination. To that end, SCE shall cancel, to the extent possible, any pending orders of, or return, any materials, or equipment procured pursuant to this Agreement. To the extent that Interconnection Customer has already paid SCE for any or all costs of such materials, equipment or contracts cancelled or returned, SCE shall refund such amounts to Interconnection Customer, less any costs or penalties incurred by SCE to cancel pending orders, or return, of such materials and equipment. ..
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9 5.3. In the event that this Agreement is terminated or if the Work is completed before the effective date of the IFA and a payment shortfall exists pursuant to Section
5.3.2 of this Agreement, SCE shall make reasonable efforts to submit a final invoice to Interconnection Customer of all charges and expenses within twelve (12) months from the date of termination of or completion of the Work performed under this Agreement. In such event, the following true-up process will be used:
5.3.1. Payment Excess. In the event that Interconnection Customer’s payment(s) paid in accordance with this Agreement exceeds the amount of SCE’s charges and expenses incurred or irrevocably committed to be incurred pursuant to this Agreement, SCE shall return the excess amount without interest to Interconnection Customer within thirty (30) Calendar Days after the date of a final invoice without offset for any amount that may be in dispute.
5.3.2. Payment Shortfall. In the event that Interconnection Customer’s payment(s) paid in accordance with this Agreement is less than the amount of SCE’s charges and expenses incurred or irrevocably committed to be incurred pursuant to this Agreement, then Interconnection Customer shall pay the difference, without interest, within thirty (30) Calendar Days of the date of receipt of a final invoice, without offset for any amount which may be in dispute. If Interconnection Customer fails to pay the final invoice, SCE shall also have the right to draw on the Interconnection Financial Security for any payment shortfall.
5.4. In the event that Interconnection Customer elects to terminate this Agreement but still take delivery of materials or equipment procured pursuant to this Agreement, ..
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10 Interconnection Customer shall assume all payment obligations with respect to delivery of such materials, equipment, and contracts, and SCE shall transfer such materials and equipment, and, if necessary, assign such contracts, to Interconnection Customer as soon as reasonably practicable, at Interconnection Customer’s expense.
5.5. In the event that Interconnection Customer and SCE enter into a IFA concurrently with the termination of this Agreement, then any applicable work product generated by SCE and any associated payments made by Interconnection Customer pursuant to this Agreement not already credited shall be reflected in the scope of, and the amount due under, such IFA.
6. Taxes
6.1. ITCC: The Income Tax Component of Contribution specified in the Preliminary Statement, Part M of SCE’s tariff on file with the CPUC, applicable to the Interconnection Facilities Cost, and the Capital Additions Cost. The ITCC applicable to the Interconnection Facilities Cost is provided in Exhibit B.
6.2. If SCE or the IRS makes a determination that the payment(s) made pursuant to this Agreement are taxable as contributions in aid of construction, either: (i) SCE may draw on the financial security provided by the Interconnection Customer for the estimated tax liability held on behalf of the Project to pay the tax liability imposed on SCE; or (ii) Interconnection Customer may elect to make a nonrefundable cash payment to SCE within thirty (30) Calendar Days of receipt of the invoice in the actual amount of the resultant tax liability. The tax liability will be calculated in accordance with IRS Notice 2016-36. ..
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11 7. Uncontrollable Force. No Party shall be considered to be in default with respect to any obligation hereunder, other than the obligation to pay money when due, if prevented from fulfilling such obligation by Uncontrollable Force, which for purposes of clarity shall include pandemic. A Party unable to fulfill any obligation hereunder (other than an obligation to pay money when due) by reason of Uncontrollable Force shall give notice and the full particulars of such Uncontrollable Force to the other Party in writing or by telephone as soon as reasonably possible after the occurrence of the cause relied upon. Telephone notices given pursuant to this Section 7 shall be confirmed in writing as soon as reasonably possible and shall specifically state the full particulars of the Uncontrollable Force, the time and date when the Uncontrollable Force occurred, and when the Uncontrollable Force is reasonably expected to cease. The Party affected shall exercise due diligence to remove such disability with reasonable dispatch, but shall not be required to accede or agree to any provision not satisfactory to it in order to settle and terminate a strike or other labor disturbance.
8. Indemnity. Each Party shall at all times indemnify, defend, and hold the other Party harmless from, any and all Losses arising out of or resulting from the other Party’s action or inactions with respect to its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party.
9. Consequential Damages. In no event shall any Party be liable under any provision of this Agreement for any losses, damages, costs or expenses for any special, indirect, incidental, consequential, or punitive damages, including but not limited to loss of profit or revenue, loss of the use of equipment, cost of capital, or cost of temporary equipment or services, whether based in whole or in part in contract or in tort, including negligence, strict liability, or any ..
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12 other theory of liability; provided, however, that damages for which a Party may be liable to another Party under another agreement will not be considered to be special, indirect, incidental, or consequential damages hereunder.
10. Entire Agreement. This Agreement, including all Exhibits attached hereto, constitutes the complete and final expression of the agreement between the Parties and is intended as a complete and exclusive statement of the terms of their agreement. This Agreement supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and other agreements, which may have been made in connection with the subject matter of this Agreement. Nothing in this Agreement is intended or shall be deemed to require SCE or Interconnection Customer to enter into any other agreement, including without limitation any agreement to interconnect the Project. Should the Parties enter into an IFA, such IFA will supersede this Agreement.
11. Insurance. Each Party shall maintain insurance coverage consistent with the requirements as set forth in the IFA.
12. Access Rights. Each Party shall provide access rights consistent with the requirements as set forth in the IFA.
13. Waiver. Any waiver at any time by either Party of its rights with respect to this Agreement, shall not be deemed a waiver with respect to any other failure to comply with any obligation, right or duty of this Agreement. Any delay, with the exception of the statutory period of limitation in assessing or enforcing any right, shall not be deemed a waiver of such right.
14. No Joint Liability. The covenants, obligations, and liabilities of the Parties are intended to be several and not joint or collective, and nothing contained in this Agreement shall ever be ..
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13 construed to create an association, joint venture, trust, or partnership, or to impose a trust or partnership covenant, obligation, or liability on or with regard to either Party. Each Party shall be individually responsible for its own covenants, obligations, and liabilities as provided in this Agreement. Neither Party shall be under the control of the other Party.
Neither Party shall be the agent of or have a right or power to bind the other Party without such other Party’s express written consent.
15. No Third Party Beneficiaries. The Parties do not intend to create rights in, or to grant remedies to, any third party as a beneficiary either of this Agreement or of any duty, covenant, obligation, or undertaking established herein.
16. Governing Law. This Agreement shall be interpreted by and in accordance with the laws of the State of California, without regard to the principles of conflict of laws therefor, or the laws of the United States, as applicable, as if executed and to be performed wholly within the United States.
17. Successors and Assigns. This Agreement shall be binding upon the Parties and their successors and assigns. This Agreement may be assigned by a Party only with the written consent of the other Party; provided that a Party may assign this Agreement without the consent of the other Party to any Affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement; and provided further that the Interconnection Customer shall have the right to assign this Agreement, without the consent of the other Party, for collateral security purposes to aid in providing financing for the Generating Facility, provided that the Interconnection Customer will require any secured party, trustee or mortgagee to notify the other Party of any such assignment. Any financing arrangement ..
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14 entered into by the Interconnection Customer pursuant to this Section will provide that prior to or upon the exercise of the secured party’s, trustee’s or mortgagee’s assignment rights pursuant to said arrangement, the secured creditor, the trustee or mortgagee will notify the other Party of the date and particulars of any such exercise of assignment right(s). Any attempted assignment that violates this Section is void and ineffective. Any assignment under this Agreement shall not relieve a Party of its obligations, nor shall a Party’s obligations be enlarged, in whole or in part, by reason thereof. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed.
18. Survival. Indemnity obligations and obligations to pay charges and expenses incurred or irrevocably committed to be incurred pursuant to this Agreement will survive termination of this Agreement.
19. FERC Filing. SCE will report this Agreement and amendments thereto in its Electronic Quarterly Report (“EQR”) in lieu of filing it at FERC, pursuant to Applicable Laws and Regulations.
20. Reservation of Rights. SCE shall have the right to make a unilateral filing with FERC to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule or regulation under section 205 or any other applicable provision of the Federal Power Act and FERC’s rules and regulations thereunder, and Interconnection Customer shall have the right to make a unilateral filing with FERC to modify this Agreement pursuant to section 206 or any other applicable provision of the Federal Power Act and FERC’s rules and regulations thereunder; provided that each Party shall have the right to protest any such filing by another Party and to participate fully in any proceeding before FERC in which such modifications may be considered. Nothing in this ..
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15 Agreement shall limit the rights of the Parties or of FERC under sections 205 or 206 of the Federal Power Act and FERC’s rules and regulations thereunder, except to the extent that the Parties otherwise mutually agree as provided herein.
21. Construction. Ambiguities or uncertainties in the wording of this Agreement shall not be construed for or against any Party, but shall be construed in the manner that most accurately reflects the Parties’ intent as of the date they executed this Agreement.
22. Amendment. The Parties may by mutual agreement amend this Agreement by a written instrument duly executed by all of the Parties. Such amendment shall become effective and a part of this Agreement upon satisfaction of all Applicable Laws and Regulations.
23. Confidentiality. The provisions governing confidentiality in the IFA are hereby incorporated herein, in their entirety.
24. Authority. Each Party hereby represents that it has the right, power, and authority to enter into this Agreement, to become a Party hereto and to perform its obligations hereunder. This Agreement is a legal, valid and binding obligation of such Party, enforceable against such Party in accordance with its terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforceability is sought in a proceeding in equity or at law).
25. Warranties. Interconnection Customer warrants that it is duly organized, validly existing and in good standing under the laws of the state in which it is organized, formed, or incorporated, as applicable; and that it is qualified to do business in the state or states in which the Interconnection Facilities will be located; and that it has the corporate power and ..
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16 authority to own its properties, to carry on its business as now being conducted and to enter into this Agreement and carry out the transactions contemplated hereby and perform and carry out all covenants and obligations on its part to be performed under and pursuant to this Agreement.
26. Headings. The descriptive headings of the various Sections of this Agreement have been inserted for convenience of reference only and are of no significance in the interpretation or construction of this Agreement.
27. Execution. This Agreement may be executed in two or more counterparts, each of which is deemed an original, but all constitute one and the same instrument. ..
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17 28. Effective Date. This Agreement shall become effective upon execution by all Parties subject to acceptance by FERC (if applicable), or if filed unexecuted, upon the date specified by FERC.
SOUTHERN CALIFORNIA EDISON COMPANY
By _________________________
Name: Jim Buerkle
Title: Managing Director of Major Projects, Design
Engineering, and Grid Contracts
ACCEPTED AND AGREED to this day of __________________
CITY OF VERNON
By: _____________________________
Name: _ Carlos R. Fandino_____________
Title: __City Administrator____________
ATTEST:
____________________________________
Yonnie Parker, Deputy City Clerk
APPROVED AS TO FORM:
_____________________________________
Zaynah N. Moussa, City Attorney
ACCEPTED AND AGREED to this day of __________________ ..
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18 EXHIBIT A
SCOPE OF WORK
A description of the Work to be performed by SCE. A one-line diagram of the interconnection is included.
SCE’s Interconnection Facilities described in this Exhibit A to the Agreement are based on SCE’s preliminary engineering and design and were derived from SCE’s Interconnection Facilities Study Report.
The Work to be performed under this Agreement is solely the detailed design, engineering, and procurement for the Interconnection Facilities described below, in order to advance the Project towards its in-service date using reasonable efforts prior to the execution of an IFA. SCE will not perform any construction for the Interconnection Facilities under this Agreement; such construction activities will be performed pursuant to a subsequent IFA.
SCE will commence detailed design, engineering, and procurement for the Interconnection Facilities described below.
1. Interconnection Facilities:
(i) Laguna Bell Substation (DE Section for 50 MW of the 150 MW) Perform relay coordination study
(ii) Laguna Bell Substation (AB Section for 100 MW of the 150 MW)
1. Install facilities for two (2) new 66 kV switchrack positions. This work includes the following for each of the new positions:
a. One (1) 66 kV dead-end switchyard structure.
b. Two (2) 66 kV voltage transformers with steel pedestal support structures. c. Three (3) 66 kV line drops.
d. Two (2) 66 kV circuit breakers.
e. Four (4) 66 kV group operated disconnect switches, one with grounding attachment.
2. Install the following relays to protect the new line position:
Two (2) line current differential relays. The make and type of current differential relays will be specified by SCE during final engineering of SCE Interconnection Facilities.
(iii) Laguna Bell-P.S.33 66 kV line (AB Section for 100 MW of the 150 MW).
1. Utilize approximately 3.75 miles of existing idle line. Use of this existing idle line will require pole replacements, pole head frames, and insulator replacements which will be determined during execution of the project.
2. Install new overhead and underground facilities to complete the line into Laguna Bell Substation (AB section). The actual scope will be determined during execution of the project. This study assumed the following:
a. Installation of three (3) tubular steel riser poles
..
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19 b. Installation of three (3) underground vaults
c. Installation of approximately 1,500’ of duct bank
d. Installation of approximately 5,700’ of underground cable e. Installation of ten (10) wood poles
f. Thirty-three (33) pole head reframes
g. Thirteen (13) pole head insulator replacements
h. Approximately 2,500’ of overhead conductor
(iv) Laguna Bell-P.S.20-P.S.38 66 kV line. (AB Section for 100 MW of the 150 MW)
1. Utilize approximately 3.25 miles of existing idle line. Use of this existing idle line will require pothead replacements, pole head frames, and insulator replacements which will be determined during execution of the project.
2. Install new overhead and underground facilities to complete the line into Laguna Bell Substation (AB section). The actual scope will be determined during execution of the project. The Interconnection Facilities Study Report assumed the following:
a. Installation of two (2) tubular steel riser poles
b. Installation of six (6) underground vaults
c. Installation of approximately 5,700’ of duct bank
d. Installation of approximately 19,000’ of underground cable e. Installation of one (1) pole switch
f. Forty-one (41) pole head reframes
g. Sixteen (16) pole head insulator replacements
h. Two (2) tubular steel pole pothead replacements
i. One (1) tubular steel pole replacement
(v) Telecommunications. (AB Section for 100 MW of the 150 MW)
1. Install all required lightwave, channel banks, and associated equipment (including terminal equipment), supporting line protection and the RTU requirements at the Laguna Bell Substation.
2. Install fiber optic cable from Laguna Bell Substation to the City of Vernon boundary along the existing Laguna Bell-P.S.33 66 kV line. The Study assumed the installation of approximately 300’ of underground fiber optic cable from Laguna Bell Substation to outside the fence line and rise up with approximately 3.75 miles of overhead fiber optic cable to the City of Vernon boundary.
3. Install fiber optic cable from Laguna Bell Substation to the City of Vernon boundary along the existing Laguna Bell-P.S.20-P.S.38 66 kV line. The Study assumed the installation of approximately 300’ of underground fiber optic cable from Laguna Bell Substation to outside the fenceline and rise up with approximately 3.25 miles of overhead fiber optic cable to the City of Vernon boundary. (vi) Metering. (AB Section for 100 MW of the 150 MW).
Install meters required to meter the retail load at the City of Vernon. Notwithstanding that the meters will be located on the Interconnection Customer’s side of the Point of Change of Ownership, SCE shall own, operate and maintain such facilities as part of the SCE’s Interconnection Facilities.
(vii) Power System Controls. (AB Section for 100 MW of the 150 MW).
Add points to existing RTU at Laguna Bell Substation to include points for new protection ..
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20 relay/status/alarm/control.
(viii) Real Properties. (AB Section for 100 MW of the 150 MW).
Obtain easements and/or acquire land for the installation of SCE’s Interconnection Facilities.
(ix) Environmental Activities, Permits, and Licensing. (AB Section for 100 MW of the 150 MW)
Perform and/or coordinate the required environmental activities and obtain required licensing and permits for the installation of SCE’s Interconnection Facilities, including any associated telecommunication equipment, if applicable.
1. SCE Scope of Work
i. SCE will act as the lead for regulatory agency communication for permits issued to SCE covering such SCE facilities.
ii. SCE environmental activities may include, but are not limited to, the following:
a. Perform all environmental studies and construction monitoring of SCE internal substation construction activities and provide study results to the City of Vernon for inclusion in its environmental documents, if applicable.
b. Collaborate with the City of Vernon during the environmental study phase on the City of Vernon’s proposed study methodologies and findings, as studies are being planned and performed for SCE’s scope of work.
c. Review City of Vernon’s CEQA and/or National Environmental Policy Act (“NEPA”) documents, technical studies, surveys, and other environmental documentation to ensure SCE’s scope of work is adequately described in such documents (City of Vernon will include SCE’s scope of work in its environmental documents. If the City of Vernon’s CEQA and/or NEPA documents do not sufficiently incorporate SCE’s scope of work, SCE’s assumed environmental work and permitting level of effort may increase, resulting in the need to update cost and duration estimates, and potentially amend the Interconnection Agreement).
d. Review SCE’s internal existing technical reports/documents when available.
e. Prepare SCE’s project description, including scope changes during permitting/preconstruction or construction.
f. Communicate scope changes to the City of Vernon’s environmental team and discuss/approve subsequent actions including new surveys as necessary.
g. Complete General Order 131-D Consistency Determination and Environmental Evaluation.
h. Regulatory agency communication, consultation, reporting, and acquisition of SCE permits addressing SCE's facilities and scope of work. i. Prepare environmental requirements for construction clearance. j. Develop communication plan.
..
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21 k. Perform pre-construction coordination field visit. l. Provide Environmental Awareness/Worker Environmental Awareness Program (“WEAP”) training.
m. Perform construction monitoring oversight.
n. Complete construction and post-construction site assessments.
2. City of Vernon Scope of Work
i. City of Vernon will perform all environmental studies and prepare draft environmental permit applications related to the installation of such SCE facilities, except for the SCE internal substation activities as described above. The City of Vernon’s responsibilities include as applicable, but are not limited to:
notifications to the Native American Heritage Commission (“NAHC”) and follow up notifications to the tribes and individuals in the NAHC contact list; performing cultural and paleontological resources records searches, cultural resources inventories (survey and recording), testing and evaluation and/or data recovery of archaeological sites, and appropriate documents in the form of inventory reports, research design, and/or data recovery reports; cultural and paleontological monitoring when/if required, and arranging curation agreements for artifacts and fossil specimens collected; performing a California Natural Diversity Database search, habitat assessment, and protocol or focused surveys for species with the potential of occurring in identified suitable habitat; conducting jurisdictional delineations for wetlands and other regulated waters; preparing draft environmental permit applications, pre-construction biological resource surveys for such SCE facilities, biological resource monitoring during construction of such SCE facilities; mitigation costs including, but not limited to, offsite/compensatory mitigation and onsite restoration, and developing mitigation plans or other environmental reports or submittals to support installation of such SCE facilities.
ii. Prior to commencing work and during execution of work, the City of Vernon should collaborate and obtain SCE concurrence on all work outlined above.
Should the City of Vernon-performed environmental studies, surveys, or construction monitoring not meet the Federal or State industry standards in accordance with Applicable Laws and Regulations, and as determined by SCE, the City of Vernon shall be obligated to remedy deficiencies under SCE’s direction.
In the event the assumptions presume that the Interconnection Customer performs part of the environmental activities on SCE’s behalf, the Interconnection Customer will be required to:
1. Provide SCE the Environmental Services Costs Declaration of the actual costs incurred for work performed.
2. Remedy any and all deficiencies under SCE’s direction, should the environmental studies and resulting reports not comply with industry standards established by State of California and/or Applicable Laws and Regulations, as determined by SCE.
..
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22 2. Point of Change of Ownership, Point of Interconnection and One-Line Diagram of Interconnection:
For purposes of the Work to be performed under this Agreement, the following assumptions shall apply with respect to the Point of Change of Ownership and Point of Interconnection:
i. Point of Change of Ownership.
(i) Laguna Bell-P.S.33 66 kV Line: The Point of Change of Ownership shall be the point where the conductors of the Laguna Bell-P.S.33 66 kV Line are attached to the Last Structure at the City of Vernon boundary. The City of Vernon shall own and maintain the Last Structure, the conductors, insulators, and jumper loops from such Last Structure to the City of Vernon facilities. SCE will own the insulators that are used to attach the SCE owned conductors to the Last Structure. (ii) Laguna Bell-P.S.33 66 kV Line telecommunication fiber optic cable: The Point of Change of Ownership shall be the point designated by SCE where the Interconnection Customer’s fiber optic cable is attached to the SCE owned fiber optic cable at the City of Vernon boundary.
(iii) Laguna Bell-P.S.20-P.S.38 66 kV Line: The Point of Change of Ownership shall be the point where the conductors of the Laguna Bell-P.S.33 66 kV Line are attached to the Last Structure at the City of Vernon boundary. The City of Vernon shall own and maintain the Last Structure, the conductors, insulators, and jumper loops from such Last Structure to the City of Vernon facilities. SCE will own the insulators that are used to attach the SCE owned conductors to the Last Structure. (iv) Laguna Bell-P.S.20-P.S.38 66 kV Line telecommunication fiber optic cable: The Point of Change of Ownership shall be the point designated by SCE where the Interconnection Customer’s fiber optic cable is attached to the SCE owned fiber optic cable at the City of Vernon boundary.
ii. Point of Interconnection. SCE’s Laguna Bell 66 kV Substation. ..
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23 iii. One-Line Diagram of Interconnection.
..
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24 EXHIBIT B
ESTIMATED COST OF THE WORK AND FINANCIAL SECURITY
SCE will provide an estimated cost of the Work identified in Exhibit A and any associated financial security, including Interconnection Financial Security and ITCC. a. Estimated Cost
Element- Interconnection
Facilities Cost
One-Time Cost ITCC Total
Distribution Provider’s Interconnection
Facilities
Laguna Bell-P.S.33 66kV Line$2,513,331 $603,199 $3,116,530 Laguna Bell-P.S. 20-P.S.38 66 kV Line$4,108,342 $986,002 $5,094,343 Laguna Bell Substation Switchrack $3,324,745 $797,939 $4,122,683 Power System Controls $15,904 $0.00 $15,904
Metering Services $62,044 $14,890 $76,934
IT Telecommunications $199,478 $47,875 $247,352
Laguna Bell-P.S.33 66kV Line
Transmission Telecommunication $395,926 $95,022 $490,948 Laguna Bell-P.S. 20-P.S.38 66 kV Line
Transmission Telecommunication $409,232 $98,216 $507,448 Environmental and Licensing $117,513 $28,203 $145,716
Real Properties $115,006 $27,601 142,607
Laguna Bell Relay Coordination$64,430 $0.00 $64,430
Total$11,245,614$80,334 $2,698,947 $14,024,895
Note 1: All amounts shown above are in nominal dollars.
Note 2: The estimated costs provided in the table above are based on the Interconnection Facilities Study Report and have been adjusted to reflect solely the Work SCE will perform for the Facilities as provided in Exhibit A of this Agreement.
b. Financial Security
i. Interconnection Financial Security.
1. The Distribution Provider’s Interconnection Facilities: Pursuant to Section 2 of this Agreement, the Interconnection Customer shall provide Interconnection Financial Security in the total amount of $2,000,000 to cover the costs for the Work identified in Section a.i of Exhibit A. The Interconnection Customer can reduce the Inteconnection Financial Security amount on a dollar for dollar basis once the total Project Payment amount outstanding becomes less than the Interconnection Financial Security amount posted.
ii. Estimated Tax Liability.
Pursuant to Section 6 of this Agreement, the Interconnection Customer’s estimated tax liability is as follows:
Estimated tax liability for Distribution Provider’s Interconnection Facilities = The sum of the product of (i) the applicable ITCC rate for the year payments are to be received, and ..
Item 10 Page 24 of 29
25 (ii) the total of the payments to be received for the Interconnection Facilities Cost for that year.
Year(s) payments
to be received
Applicable ITCC
rate
Total payments to be
received for
Interconnection
Facilities Cost
ITCC for Distribution
Provider’s
Interconnection
Facilities
2023 & beyond See Section 4.4 of
Attachment J to
the Tariff
$11,245,614 Applicable ITCC rate x
Total payments to be
received for
Interconnection
Facilities Cost
*The rate(s) applicable to the Tax Security is in accordance with Attachment J to the WDAT. ..
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26 EXHIBIT C
PAYMENT AND FINANCIAL SECURITY SCHEDULE
SCE will include a schedule(s) of the amount, and due date, for the payments and financial security, as applicable, reflected in Exhibit B.
a. Payment Schedule
The payment amounts shown below are based on an estimate of the monthly incurred costs for the scope of Work identified in Exhibit A.
Payment
No.
Payment
Due Date
Interconnection
Facilities Cost
One-
Time
Cost
ITCC Project
Payment
1 5/1/2024 $132,670 $948 $31,841 $165,459 2 6/1/2024 $161,445 $1,153 $38,747 $201,345 3 7/1/2024 $195,893 $1,399 $47,014 $244,306 4 8/1/2024 $236,857 $1,692 $56,846 $295,395 5 9/1/2024 $285,176 $2,037 $68,442 $355,655 6 10/1/2024 $341,605 $2,440 $81,985 $426,030 7 11/1/2024 $406,703 $2,905 $97,609 $507,217 8 12/1/2024 $480,697 $3,434 $115,367 $599,498 9 1/1/2025 $566,745 $4,049 $136,019 $706,813 10 2/1/2025 $657,474 $4,697 $157,794 $819,965
11 3/1/2025 $753,885 $5,385 $180,932 $940,202
12 4/1/2025 $852,957 $6,093 $204,710 $1,063,760
13 5/1/2025 $950,582 $6,790 $228,140 $1,185,512
14 6/1/2025 $1,041,710 $7,441 $250,010 $1,299,161
15 7/1/2025 $1,120,741 $8,006 $268,978 $1,397,725
16 8/1/2025 $1,182,128 $8,445 $283,711 $1,474,284
17 9/1/2025 $1,221,117 $8,723 $293,068 $1,522,908
18 10/1/2025 $657,229 $4,697 $157,735$819,661
Total $11,245,614 $80,334 $2,698,947 $14,024,895*
All amounts shown above are in nominal dollars.
*Interconnection Facilities Payment (Interconnection Facilities Costs $11,245,614 + One-Time Cost $80,334 + ITCC $2,698,947) = $14,024,895 (based on Estimated Cost) b. Financial Security Schedule
i. Interconnection Financial Security
The Interconnection Customer shall provide to SCE Interconnection Financial Security in the total amounts specified in Section b.i of Exhibit B of this Agreement by the dates as provided below.
..
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27 Interconnection
Financial
Security (IFS)
Interconnection
Facilities
ITCC Total Amount Due Date
IFS amount
required
pursuant to this
Agreement
$11,325,948
$2,698,947
$2,000,000
Within thirty
calendar days
of the
Effective Date
Total $11,325,948 $2,698,947 $2,000,000
The Interconnection Financial Security posted by the Interconnection Customer in accordance with this Agreement shall be applied towards the Interconnection Customer’s obligation to post Interconnection Financial Security pursuant to the WDAT Section 8. ..
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28 EXHIBIT D
MILESTONES
SCE will include a list of relevant milestones applicable to the Work.
Item Milestone Responsible
Party Due Date
(b) Submittal of written authorization to
proceed with design and procurement
of the Distribution Provider’s
Interconnection Facilities,
Distribution Upgrades and Network
Upgrades to SCE
Interconnection
Customer
Within thirty (30)
Calendar Days after the Effective Date of this
Agreement
(c) Submittal of posting of
Interconnection Financial Security for
the Distribution Provider’s
Interconnection Facilities,
Distribution Upgrades and Network
Upgrades to SCE, pursuant to Section
b.i of Exhibit C of this Agreement
Interconnection
Customer
In accordance with the
schedule in Section b.i of
Exhibit C of this
Agreement
(e) Submittal of Tax Security for the
estimated tax liability to SCE,
pursuant to Section b.ii of Exhibit C
of this Agreement
Interconnection
Customer
In accordance with the
schedule in Section b.ii
of Exhibit C of this
Agreement
(f) Submittal of initial specifications for
the Interconnection Customer’s
Interconnection Facilities including
System Protection Facilities
Interconnection
Customer
Within thirty (30)
Calendar Days after the Effective Date of this
Agreement
(g) Review of and comment on the
Interconnection Customer’s initial
specifications
SCE
Within thirty (30)
Calendar Days after the
Interconnection
Customer’s submission
of initial specifications
(h) Submittal of initial information
including SCE’s Transmission
System information necessary to
allow the Interconnection Customer
to select equipment SCE
Within ninety (90)
Calendar Days after the Effective Date of this
Agreement
(i) Submittal of final specifications for
the Interconnection Customer’s
Interconnection Facilities including
System Protection Facilities, to SCE
Interconnection
Customer
At least twelve (12)
months prior to
completion of the
Distribution Provider’s
Interconnection
Facilities, Distribution
..
Item 10 Page 28 of 29
29 Item Milestone Responsible
Party Due Date
Upgrades and Network
Upgrades
(j) Review of and comment on the
Interconnection Customer’s final
specifications
SCE
Within thirty (30)
Calendar Days after the
Interconnection
Customer’s submission
of final specifications
(k) Submittal of updated information by
the Interconnection Customer,
including manufacturer information Interconnection
Customer
No later than one
hundred eighty (180)
Calendar Days prior to
Trial Operation
(l) Completion of the Distribution
Provider’s Interconnection Facilities*
SCE
Within thirty-six(36)
months following the Effective Date of this
Agreement
(m) In-Service Date* Interconnection
Customer May 1, 2027
* Note: SCE shall use commercially reasonable efforts to complete the Work described in Exhibit A to support a May 1, 2027, In-Service Date assuming this Agreement is executed by April 30, 2024; however, pursuant to Section 4 of the Agreement, the timeline in this Exhibit D is dependent on the Interconnection Customer coordinating with SCE to complete the milestones as specified in a timely manner. SCE does not warrant that such Work will be completed in time to meet such date, and the Interconnection Customer acknowledges and understands that such date is only an estimate and therefore, SCE shall not be liable for any cost or damage incurred by the Interconnection Customer as a result of or due to any delay in the completion of the Work provided for in this Agreement. In the event SCE reasonably expects that it will not be able to complete the Distribution Provider’s Interconnection Facilities, by the specified date, SCE shall promptly provide written notice to the Interconnection Customer and shall undertake commercially reasonable efforts to meet the earliest date thereafter. ..
Item 10 Page 29 of 29
City Council Agenda Report
Meeting Date: April 16, 2024
From: Carlos Fandino, City Administrator
Department: City Administration
Submitted by: Angela Kimmey, Deputy City Administrator
Subject
Services Agreement with Renne Public Policy Group for Legislative and Regulatory Advocacy Recommendation
Approve and authorize the City Administrator to execute a Professional Services Agreement with Renne Public Policy Group (RPPG), in substantially the same form as submitted, for legislative and regulatory advocacy services for a total amount not-to-exceed $447,000 for a three-year term.
Background
The City requires the services of a third-party firm to provide legislative, regulatory, and administrative advocacy on the full spectrum of legislative and regulatory proposals that could impact the City’s overall operations, specifically with expertise in public health and utility services.
Such advocacy services are necessary to remain apprised of important legislative and regional issues that may impact the City in a positive or negative way, to protect the City’s interests and to identify resources available to enhance City Services and programs. To that end, and pursuant to Vernon Municipal Code (VMC) Section 3.32.080, on January 25, 2024, City Administration issued a Request for Proposals (RFP) for Legislative and Regulatory Advocacy Services. In general, the scope of work included in the RFP consisted of monitoring legislation, providing testimony, developing strategy, working with California administrative agencies, attending and participating in legislative and regulatory conference calls and meetings, arranging meetings, and providing regular updates to City staff. Under the direction of the City Administrator, the selected firm will assist the City in developing and successfully pursuing its legislative and funding priorities.
Pursuant to VMC Section 3.32.130, the RFP was posted on the PlanetBids online platform and emailed to 13 qualified firms in compliance. In response to the RFP, four proposals were received by the March 4, 2024 deadline. The written proposals were subject to a review process by city staff with knowledge of the City’s legislative and regulatory needs. Individual scores were applied by members of the selection panel using the evaluation criteria set forth in the RFP. At the conclusion of the assessment, Renne Public Policy Group (RPPG) emerged as the best suited firm to meet the city’s legislative and regulatory advocacy needs as communicated through the RFP.
Based on the results of the RFP process, staff recommends approval of a three-year agreement with RPPG to provide legislative and regulatory advocacy services for the City. As noted in their proposal, RPPG is partnering with Emanuels Jones and Associates to meet the City’s diverse needs for expertise in general city legislation, and also specialty expertise in public health and utilities including support for grant funding identification. As noted in RPPG’s proposal, by the end of 2024, the Legislature will have fully turned over since 2012. This provides an opportunity for Vernon and VPU to establish new relationships both inside and outside the City’s legislative delegation. Increased legislative engagement will enable the city to develop robust relationships with legislative leaders, the Administration, key state agencies, staff, and regulatory bodies. To leverage this opportunity, RPPG will conduct an educational tour at the Capitol, guided by the ..
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City’s legislative priorities, to drive awareness on the issues of greatest importance to the city and promote the city’s efforts to grow and evolve. This will better position the city for successful funding requests.
The proposed agreement has been reviewed and approved as to form by the City Attorney’s Office. City Council approval of the proposed agreement is required pursuant to VMC Section
3.32.030 (A) as it exceeds $100,000.
Fiscal Impact
The fiscal impact is not-to-exceed $447,000 over the three-year term of the agreement. The cost for the proposed services agreement will be shared between City Administration and the Public Utilities Department (VPU) with a $49,000 annual cost allocated to City Administration and $100,000 to VPU. Sufficient funds are available in General Fund, City Administration Department, Professional Services Account No. 011-010-105-529215 and Electric Enterprise Fund, Professional Services Account No. 055-050-580-529215 for the current fiscal year and will be budgeted in subsequent years.
Attachments
1. Services Agreement – Renne Public Policy Group ..
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SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND RENNE PUBLIC
POLICY GROUP FOR LEGISLATIVE AND REGULATORY ADVOCACY SERVICES
COVER PAGE
Contractor: Renne Public Policy Group
Responsible Principal of Contractor: Jon Holtzman, Founding Partner Notice Information - Contractor: Renne Public Policy Group 1127 11th Street, Suite 300
Sacramento, CA 95814
Attention: Dane Hutchings, Director
Telephone: (916) 230-6935
Notice Information - City: City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attention: Carlos R. Fandino, Jr.,
City Administrator
Telephone: (323) 583-8811 ext. 228
Commencement Date: April 16, 2024
Termination Date: April 15, 2027
Consideration: Total not to exceed $447,000 (includes all applicable sales tax); and more particularly
described in Exhibit B
Records Retention Period Three (3) years, pursuant to Section 11.20 ..
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SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND RENNE PUBLIC POLICY
GROUP FOR LEGISLATIVE AND REGULATORY ADVOCACY SERVICES
This Agreement is made between the City of Vernon, a California charter City and California municipal corporation (“City”), and Renne Public Policy Group, a division of Renne Public Law Group, a California Limited Liability Partnership (“Contractor”).
The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR . City agrees to engage Contractor to
perform the services as hereinafter set forth as authorized by the City Council on April 16, 2024. 2.0 SCOPE OF SERVICES.
2.1 Contractor shall perform all work necessary to complete the services set forth in the City’s Request for Proposals issued on or about January 25, 2024, and titled Legislative and Regulatory Advocacy Services, and Contractor's proposal to the City ("Proposal") dated March 4, 2024, Exhibit “A”, a copy which is attached to and incorporated into this Agreement by reference.
2.2 All services shall be performed to the satisfaction of City.
2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services. 3.0 PERSONNEL.
3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Agreement.
3.2 Contractor shall not subcontract any services to be performed by it under this Agreement without prior written approval of City.
3.3 All of the services required hereunder will be performed by Contractor or by City approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 TERM. The term of this Agreement shall commence on April 16, 2024, and it shall continue until April 15, 2027, unless terminated at an earlier date pursuant to the provisions thereof.
5.0 COMPENSATION AND FEES.
5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of Services Agreement Renne Public Policy Group