Attachment A
High Desert Underground,
Inc. Construction Agreement
CIP#___________
1 Construction Agreement/High Desert Underground/Project MS26-135
CONSTRUCTION AGREEMENT
BY AND BETWEEN
THE CITY OF VICTORVILLE
AND
HIGH DESERT UNDERGROUND, INC.
FOR
QUALIFIED SEWER LATERAL PIPELINE REPAIR CONTRACTOR,
PROJECT MS26-135
THIS CONSTRUCTION AGREEMENT (the “Agreement”) dated this __________________ day of ______________, 20___, for reference purpose only, is made and entered into by and between the City of Victorville, a municipal corporation located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and High Desert Underground, Inc., a California corporation, hereinafter referred to as the “Contractor”.
The City and the Contractor are sometimes hereinafter referred to as a “ Party” and collectively referred to as the “Parties.”
RECITALS:
WHEREAS, the City requires Qualified Sewer Lateral Pipeline Repair Contractor, Project MS26-135 (the Project); and
WHEREAS, in light of the facts set forth above, the City desires to retain Contractor in connection with Qualified Sewer Lateral Pipeline Repair Contractor; and
NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND
PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:
Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth herein.
Section 2. TERM OF AGREEMENT
This Agreement shall commence on July 1, 2026 (the “Commencement Date”) and shall terminate June 30, 2027 (the “Termination Date”), unless sooner terminated in accordance with the provisions of this Agreement (the “Term”). From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month-to-month basis until terminated pursuant to Section 3 below.
This Agreement may be extended for Four (4) additional one-year periods (hereinafter “Option Periods”), at the option of the City, subject to satisfactory performance as determined by the City. City shall give Contractor sixty (60) days advance written notice prior to the expiration of the initial Term and sixty (60) days advance written notice prior to the expiration date of each subsequently exercised Option Period, if any, should the City decide to exercise its option(s) to extend. In the event City does not give Contractor such written notice of its option to extend, 2 Construction Agreement/High Desert Underground, Inc./Project MS26-135
this Agreement shall terminate at the end of the then -current Term or Option Period without further notice from either Party, unless terminated earlier pursuant to the provisions of Section 21 below. Should the City fail to give Contractor the sixty (60) days written notice of its intention to exercise any Option Period, the City may, in its sole discretion, elect to exercise any Option Period at a later date, following written inquiry from Contractor.
Section 3. TERMINATION OR SUSPENSION
a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of s uch termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.
b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.
Section 4. CONTRACT DOCUMENTS; PRIORITY
a. Contract Documents. The Contract Documents consist of the following documents, all of which are either attached hereto as exhibits or are incorporated herein by this reference .
Said Contract Documents are intended to be correlative and constitute Contractor’s performance obligations:
1. This Agreement.
2. Exhibits A & B.
3. Faithful Performance and Payment Bond.
4. Guaranty.
b. Interpretation. In the event of any conflict between any of the Contract Documents, the document highest in the order of precedence (from highest to lowest), as set forth in Subsection 4.a above shall control.
Section 5. CONTRACTOR’S OBLIGATIONS
Contractor shall complete the Project as specifically set forth in the Contract Documents.
Contractor shall furnish, at its own cost and expense, all labor, services, material, tools, equipment, supplies, transportation, and any other items and facilities necessary therefore, as provided in the Contract Documents.
Section 6. COMPENSATION
The Contractor agrees to receive and accept the following amount, not to exceed Five Hundred Thousand and 00/100 Dollars ($500,00 .00), as full compensation for furnishing; all materials, doing all the work contemplated and embraced in this contract, all loss or damage arising out of the nature of the work aforesaid, the action of the elements, any unforeseen difficulties or obstructions which may arise or be encountered in the execution of the work until its 3 Construction Agreement/High Desert Underground, Inc./Project MS26-135
acceptance by the City, and for all risks of every description connected with the work, all expenses incurred by or in consequence of the suspension or discontinuance of work well and faithfully completing the whole work, thereof, according to the requirements of the agreement documents and to the satisfaction of Doug Mathews, Director of Public Works and Water , or his designee, to wit: See Exhibit “A”, Scope of Work.
Section 7. BID PROPOSAL FORMS
The City shall pay Contractor as provided in the Bid Proposal Forms, attached hereto as Exhibit “B”, and incorporated herein by this reference as though set forth in full, subject to approval of the City, when applicable.
Section 8. PREVAILING WAGES
a. Compliance with State Prevailing Wage Law. Pursuant to California Labor Code Section 1773, the City has obtained from the Director of the Department of Industrial Relations (“DIR”) the general prevailing rate of per diem wages and the general prevailing wage rate for holiday and overtime work applicable for each craft, classification, or type of worker in San Bernardino County, California, where the Project is to be performed. Copies of these prevailing rate of per diem wages are on file at the City of Victorville Finance Department/Purchasing Division and shall be made available for review to any interested party on request. Copies of these prevailing rate of per diem wages are also available from the State of California via the internet at http://www.dir.ca.gov/DLSR/PWD. Contractor and its subcontractors shall pay not less than said specified prevailing rate of per diem wages to all workers employed by them in the performance of any work under this Agreement which constitutes “public works” or “public work”, including without limitation, Qualified Sewer Lateral Pipeline Repair Contractor, and any other work or services described in or encompassed by California Labor Code (“Labor Code”) Sections 1720 through 1720.9, 1771, and 1772. Contractor shall be solely responsible for using the correct and current prevailing wage rates and performing accordingly. An error on the part of any awarding body does not relieve the Contractor from the responsibility for payment of the correct prevailing wage, or compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at the work/job site, employment of apprentices, and other requirements of Labor Code Section 1720 et seq.; Labor Code Section 1810 et seq .; California Code of Regulations, Title 8, Section 16000 et seq.; and all other applicable State labor laws.
b. Designation as Contractor Not Determinative . For purposes of this Agreement, Contractor and its subcontractors shall be subject to and shall comply with all provisions of the Labor Code applicable to contractors and subcontractors when they are engaged in the performance of any work under this Agreement which constitutes “public works” or “public work” as defined in subsection a above, despite being designated as a Contractor.
c. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the provisions of this Section and the terms of Exhibit “A” or Exhibit “B” of this Agreement, the provisions of this Section shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Scope of Services, scope of work, bid proposal, cost proposal, and/or fee schedule which conflict with the provisions of this Section.
d. Payroll Records . Contractor and its subcontractors must comply with the provisions of Labor Code sections 1776 and 1812 and all implementing regulations, including without limitation, those set forth in Title 8 of the California Code of Regulations, Section 16000 4 Construction Agreement/High Desert Underground, Inc./Project MS26-135
et seq. (hereinafter the “Regulations”), which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR.
(1) Contractor and Subcontractor Obligations . Contractor and each subcontractor must keep accurate payroll records, 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. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(a) The information contained in the payroll record is true and correct; and
(b) Contractor or subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any covered work performed by its employees on the Project.
(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to the City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.
(3) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Contractor or subcontractor has ten days in which to comply with the requirements of this section. If Contractor or subcontractor fails to do so within the ten- day period, Contractor or subcontractor will forfeit a penalty of $100.00 per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.
(4) Payment of Invoices . Copies of the certified payrolls, proof of payroll submissions, and appropriate lien releases are required with each invoice to the City.
Payment of the invoice may be delayed when payroll -related documents and/or lien releases are not included with the invoice.
e. Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code section 1777.5, which is fully incorporated by reference.
f. Notices. Pursuant to Labor Code section 1771.4, Contractor is required to post all Job Site notices, including prevailing wage rates and other notices, as required by regulation.
g. Other Labor Requirements . Contractor has the responsibility for and shall comply with all other applicable requirements of Labor Code Section 1720 et seq., Labor Code Section 1810 et seq ., the Regulations, and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor shall require the same of all its subcontractors.
5 Construction Agreement/High Desert Underground, Inc./Project MS26-135
h. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hours laws will be enforced as follows:
(1) Pursuant to Labor Code section 1775, the Contractor and any subcontractor under it shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under this Agreement by it or by any subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.
(2) Pursuant to Labor Code Section 1813, Contractor or subcontractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week, except as specified in Labor Code Section 1815. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day.
i. DIR Monitoring. Pursuant to Labor Code Section 1771.4, the Agreement for this Project is subject to compliance monitoring and enforcement by the DIR.
j. DIR Registration . Pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and its subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Agreement, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR. Contractor shall maintain a current registration for the duration of the Project. Contractor shall further include the requirements of Labor Code Sections 1725.5 and 1771.1 in any subcontract and ensure that all subcontractors are registered at the time this Agreement is entered into and maintain registration for the duration of the Project.
Section 9. WORKERS’ COMPENSATION INSURANCE
Contractor shall procure and maintain, at its own expense, during the Term of this Agreement, workers’ compensation insurance, providing coverage as required by the California State Workers’ Compensation Law. If any class of employees employed by Contractor is not protected by the California State Workers’ Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City.
In conformance with current statutory requirements of Section 1860 et seq., of the Labor Code of the State of California, the undersigned confirms the following as their certification:
I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the work of this contract.
Section 10. NOTICE TO PROCEED
No work, service, material, or equipment shall be performed or furnished under this 6 Construction Agreement/High Desert Underground, Inc./Project MS26-135
Contract unless and until a Notice to Proceed has been given to the Contractor by the City.
Contractor shall commence work pursuant to the Contract Documents as directed by the City in the Notice to Proceed, and to diligently execute the same to completion within the time limits set forth in the Contract Documents.
Section 11. COMPLIANCE WITH LAWS
Contractor shall comply with all local, state, and federal laws and regulations applicable to the performance of the work required by the Contract Documents, including any rule, regulation, or bylaw governing the conduct or performance of Contractor, its employees, officers, board members, agents, independent contractors, and subcontractors. Unless otherwise specified in the Contract Documents, all required permits and licenses shall be held or obtained by the Contractor at its sole expense.
Section 12. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY
INSURANCE
Contractor shall procure and maintain at its own expense, during the term of this Agreement, com mercial general liability insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers, and agents and independent contractors.
Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) Combined Single Limit , covering any vehicle(s) utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the services required by this Agreement.
Section 13. COURSE OF CONSTRUCTION/INLAND MARINE INSURANCE
Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom it performing any work under this agreement shall purchase, and maintain insurance to the full contract and insurable value thereof commonly referred to as a Course of Construction, Builders’ Risk, or an Inland Marine policy that offers “Installation” coverage for all materials, supplies, equipment, and property obtained by, or for Contractor, which is to become part of the work while such equipment and property is stored at the jobsite, at temporary locations, or while in transit to the project from such temporary locations. Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom is performing any work under this agreement shall also be responsible for insuring their owned, leased/rented or borrowed equipment. Insurance should also include a Loss Payee, and a Waiver of Subrogation Endorsement(s) in favor of the City of Victorville.
Section 14. ADDITIONAL INSURED
Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers, and agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds. 7 Construction Agreement/High Desert Underground, Inc./Project MS26-135
Section 15. WAIVER OF SUBROGATION RIGHTS
Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City and its officers, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.
Section 16. PROOF OF INSURANCE COVERAGE; REQUIRED PRIOR TO
COMMENCEMENT OF SERVICES
a. Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to the City Clerk certificates of said insurance at least two (2) weeks prior to the commencement of any services to be performed under this Agreement.
b. The certificates of insurance shall bear an endorsement whereby it is provided that, in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of non -payment, ten (10) days’ advance written notice shall be given.
c. The certificates of insurance shall bear an endorsement whereby it is provided that the respective insurance policy shall not be terminated or expire without first providing thirty (30) days written notice to the City of such termination or expiration.
d. The certificates of insurance shall indicate that the respective insurance policy will be maintained throughout the Term of this Agreement.
e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”
Section 17. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.
Section 18. INDEMNIFICATION
Notwithstanding the limits of any insurance, Contractor shall indemnify the City, its officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's negligent performance of or failure to perform any term, provision, covenant or 8 Construction Agreement/High Desert Underground, Inc./Project MS26-135
condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the City its officials, officers, agents, volunteers or employees, and in connection therewith:
a. Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;
b. Contractor will promptly pay any judgment rendered against the City, its officials, officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', subcontractors' or invitees') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officials, volunteers, officers, agents, and employees harmless there from;
c. In the event the City, its officials, officers, agents, volunteers or employees is made a Party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officials, volunteers officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;
d. Contractor's duty to defend and indemnify as set out in this Section shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter -Cologne Water Quality Control Act, as any of those statutes may be amended from time to time;
The Contractor's indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification from all subcontractors.
Section 19. REPORTS
Upon request by Doug Mathews, Director of Public Works and Water , or his designee, Contractor shall prepare and submit reports concerning Contractor's performance of the work required by this Agreement.
Section 20. RECORDS
a. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Doug Mathews, Director of Public Works and Water, or his designee, to evaluate the cost and the performance of such services.
9 Construction Agreement/High Desert Underground, Inc./Project MS26-135
b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles . Doug Mathews, Director of Public Works and Water, or his designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.
c. Doug Mathews, Director of Public Works and Water ,or his designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.
d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Cont ractor and made available to Doug Mathews, Director of Public Works and Water, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.
Section 21. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by both Parties.
Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all prior or contemporaneous agreements, either oral or written, between the City and Contractor with respect to the subject matter of this Agreement.
b. The Contract Documents contain all of the covenants and agreements between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Agreement and the Contract Documents.
c. No agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.
Section 23. AMBIGUITIES
This Agreement is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them.
Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.
Notwithstanding the foregoing, the Parties agree that Exhibit “A” is attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Construction Agreement and Exhibit “A” the terms of this Construction Agreement shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Construction Agreement.
10 Construction Agreement/High Desert Underground, Inc./Project MS26-135
Section 24. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:
To the City: Doug Mathews, Director of Public Works and Water, Public Works Department
City of Victorville
14343 Civic Drive
Victorville, CA 92392
To Contractor: Blane Sandwick, President
High Desert Underground, Inc.
13355 Osage Court
Apple Valley, CA 92308
b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.
Section 25. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES
No officer or employee of the City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to Contractor or to its successor(s), or for any breach of any obligation of the terms of this Agreement.
Section 26. REVIEW BY ATTORNEYS
Each Party hereto has had its attorneys review this Agreement an d all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.
Section 27. CARE OF WORK
Contractor must adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the work by the City, except those losses or damages as may be caused by the City’s own negligence. The performance of the work by Contractor or the payment of money by the City shall not relieve Contractor from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the City, when such inaccuracies are due to the negligence of Contractor.
11 Construction Agreement/High Desert Underground, Inc./Project MS26-135
Section 28. CAPTIONS AND HEADINGS
The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.
Section 29. SUCCESSORS, HEIRS, AND ASSIGNS
Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.
Section 30. GENDER; PLURAL
In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.
Section 31. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.
Section 32. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the Parties under this Agreement, shall be construed pursuant to and in accordance with California law.
Section 33. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party.
Section 34. VENUE
All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in San Bernardino County, California.
Section 35. ATTORNEY'S FEES
Should any litigation, specifically including but not limited to, arbitration and other non - judicial resolution of disputes be commenced between the Parties to this agreement concerning this agreement or the rights and duties of either i n relation thereto, the Parties prevailing in such 12 Construction Agreement/High Desert Underground, Inc./Project MS26-135
litigation or other proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney fees in such litigation where the proceeding which, if not agreed upon by the Parties, shall be determined by the court or other entity in which such litigation or other proceeding is brought.
Section 36. EFFECTIVENESS OF AGREEMENT
This Agreement shall not be binding upon the City, until signed by the authorized representative(s) of Contractor , approved by the City’s Risk Manager, and executed by the authorized City personnel or Mayor.
Section 37. REPRESENTATIONS OF PARTIES AND PERSONS
EXECUTING AGREEMENT
a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.
b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.
Section 38. COUNTERPARTS
This Agreement may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Agreement.
Section 39. CARB COMPLIANCE OBLIGATIONS
a. CARB Regulations. Contractor is aware of the California Air Resources Board (“CARB”) regulations mandating various emission reduction requirements. Contractor agrees to comply with all applicable CARB regulations (Title 13, Division 3 of the California Code of Regulations (“CCR”)) prior to commencing any work hereunder and maintain compliance throughout the duration of this Contract.
(1) Vehicles with a Gross Vehicle Weight Rating (GVWR) greater than 8,500 lbs. and light -duty package delivery vehicles operated in California may be subject to CARB’s Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets (ACF) webpage at https://ww2.arb.ca.gov/our - work/programs/advanced-clean-fleets.
(2) Effective January 1, 2024, CARB implemented amendments to the In- Use Off- Road Diesel -Fueled Fleets Regulation (13 CCR Section 2449 et seq., the “Off- Road Regulation”) which apply broadly to all self -propelled off road diesel vehicles 25 horsepower or greater and other forms of equipment used in California (including any vehicles or equipment that is rented or leased). The Off -Road Regulation is available at:
https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022/off-roaddiesel/appa-1.pdf.
b. Contractor must comply with all CARB regulations and requirements, including without limitation, all applicable sections of the Off -Road Regulation (as codified in 13 CCR Section 2449 et seq.) throughout the term of the Project and this Contract. Contractor shall be 13 Construction Agreement/High Desert Underground, Inc./Project MS26-135
solely liable for all costs associated with complying with the regulations, as well as for any and all penalties, fines, damages, or costs associated with violations or failures to comply with the regulations. Contractor shall defend, indemnify, and hold harmless the City of Victorville, its elected and appointed officials, officers, agents, and employees from and against any and all claims, liabilities, costs, penalties, interest or other damages arising out of Contractor’s failure or alleged failure to comply with CARB regulations.
(END OF THIS PAGE)
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the dates written below.
THE CITY OF VICTORVILLE HIGH DESERT UNDERGROUND, INC.
By:_________________________________ By:________________________________ Elizabeth Becerra, Blane Sandwick,
Mayor President
Dated:______________________________ Dated:_____________________________
ATTEST
By:________________________________
Jennifer Thompson,
City Clerk
Dated:_____________________________
APPROVED AS TO STANDARD FORM
By:________________________________
Andre de Bortnowsky,
City Attorney
Dated:_____________________________
By:________________________________
Sandra Bostick,
Risk Manager
Dated:_____________________________
15 Construction Agreement/High Desert Underground, Inc./Project MS26-135
EXHIBIT A
SCOPE OF WORK
City agrees to engage C ontractor and C ontractor agrees to furnish all necessary labor, tools, materials, and equipment for and to do the Work for the Project. The Work shall be performed in accordance with: (i) the Plans and Specifications and applicable Addenda (as generally described in the Request for Qualifications, Project Number MS26-135, for the Project, portions of which are attached hereto for ease of reference as Exhibit "A"; and (ii) the prices set forth in Contractor’s Bid Proposal (attached as Exhibit "B").
See Attachment
SCOPE OF WORK:
The City of Victorville Public Works Department, Sanitary Division, is responsible for the maintenance and repair of the sanitary sewer collection system within the public right -of-way, including lower sewer lateral connections and sewer mainlines. In the event of a sewer lateral or mainline blockage, failure, or other deficiency within the City’s area of responsibility, mitigation or repair may be required with the assistance of a qualified contractor.
As needed, the Contractor shall provide all labor, materials, equipment, and supervision necessary to perform and complete assigned work. The Contractor shall coordinate and manage all aspects of construction to ensure quality workmanship, cost control, and timely completion.
Work may include, but is not limited to, the repair and/or replacement of residential and commercial sewer laterals and sewer mainlines at various locations throughout the City. Typical work involves lateral piping ranging from 3-inch to 6-inch diameter; however, the Contractor shall be capable of performing work on larger diameter sewer mainline infrastructure as required.
Services may require excavation at depths exceeding five (5) feet and the use of trenchless repair methods, including but not limited to pipe bursting and slip lining.
The Contractor shall perform all work in coordination with and under the direction of the City’s Public Works and Engineering Departments.
EXHIBIT A
SCOPE OF WORK, PROJECT MS26-135
16/ Construction Agreement/High Desert Underground, Inc./Project MS26-135 17 Construction Agreement/High Desert Underground, Inc./Project MS26-135 EXH
IBIT B
PR
ICING PROPOSAL
S
ee Attachment
REQUEST FOR QUALIFICATIONS MS26-135 QUALIFIED SEWER LATERAL PIPELINE REPAIR CONTRACTOR
PRICING PROPOSAL
The undersigned declares that the locations of the proposed work, the plans, specifications, and contract documents have been carefully examined; and being familiar with all of the conditions surrounding the work, including the availability of materials and labor, the undersigned hereby proposes to furnish all labor, materials, tools, equipment, and incidentals, to complete all the work. All applicable taxes and discounts should be included. All of the aforementioned shall be done in accordance with said plans, specifications, and contract documents for the price set forth in the following schedule.
The City of Victorville reserves the right to reject any or all bids and waive any immaterial irregularities or informalities in any bid or in the bidding.
Line
Item
Description Quantity Unit
(HR=Hourly)
Hourly
Rate ($/HR)
Total
1 Laborer 1 HR
2 Operator 1 HR
3 Foreman 1 HR
4 Plumber 1 HR
5 Backhoe 1 HR
6 Excavator 1 HR
7 Dump Truck 1 HR
8 Emergency / After
Hours Rates 1 HR
EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
18/ Construction Agreement/High Desert Underground, Inc./Project MS26-135
OVERTIME DOUBLE TIME
141.75$ 189.00$
186.75$ 249.00$
195.00$ 260.00$
186.75$ 249.00$
NUMBER VEHICLE DESCRIPTION MAKE MODEL
AG01* JOHN DEERE JOHN DEERE COLD PLANER
AG02 ZIPPER 480 AZ480
AG03 CAT PM-312 CATERPILLAR PM-312
NUMBER VEHICLE DESCRIPTION MAKE MODEL
BH01 CASE 580 CAB CASE 580 SUPER M PLUS S2
BH02 CASE 580L CASE
BH03 CASE 580L CASE
BH04 CASE 580SN CASE 580SN 4WD T4 FINAL
BH05 CASE 590 CASE 590 SUPER M SERIES 2
BH06 JD 310 JOHN DEERE 310 SLHL
BH07 JD 310 JOHN DEERE 310 SLHL
NUMBER VEHICLE DESCRIPTION MAKE MODEL
CM01 CONCRETE CURB MACHINE GOMACO GT-3300
NUMBER VEHICLE DESCRIPTION MAKE MODEL
DZ01 JOHN DEERE JOHN DEERE 550 HLT
DZ02 CAT DOZER CATERPILLAR D6N
NUMBER VEHICLE DESCRIPTION MAKE MODEL
EX01 CASE CX 160 CASE CX160
EX02 DEERE 450 JOHN DEERE 450DLC
EX03 DOOSAN 225 DOOSAN SOLAR 225LCV
EX04 HYUNDAI 35 MINI X HYNDAI ROBEX 35Z-9A
EX07 HITACHI ZX350LC HITACHI ZX350LC
EX08 DEERE 135 JOHN DEERE 135G FT4
EX10 CAT 308 EXCAVATOR CATERPILLAR 308
100.00$
CURB MACHINE
COST
300.00$
55.00$
175.00$
OPERATOR / FOREMAN
SUPERINTENDENT/PM
TRUCK DRIVER
SUBCONTRACTOR/MATERIALS MARKUP
EQUIPMENT RATES (PORT TO PORT TRAVEL)
LABORER
75.00$
300.00$
125.00$
35.00$
45.00$
45.00$
35.00$
HDU EQUIPMENT RATE SHEET
JULY 1, 2026**
LABOR COST (PORT TO PORT TRAVEL)
JOB CLASSIFICATION
150.00$
100.00$
35.00$
NOTE THIS IS BARE RATES - ADD OPERATOR RATE FOR TOTAL UNIT COST COST
COST
ASPHALT GRINDERS (ZIPPERS)
BACKHOE
DOZER
HDU FEE
CITY OF VICTORVILLE
80.00$
HOURLY RATE
20%
20%
REGULAR
94.50$
124.50$
130.00$
124.50$
200.00$
35.00$
35.00$
35.00$
COST
COST
EXCAVATORS
FORKLIFTS
45.00$
EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
19/ Construction Agreement/High Desert Underground, Inc./Project MS26-135
NUMBER VEHICLE DESCRIPTION MAKE MODEL
FL01 GRADALL GRADALL 534B-8
FL02 GRADALL GRADALL 534D-6
FL03 MITSUBISHI CAB MITUBISHI CAT FGC20
FL04 TOYOTA TOYOTA
FL05 DATSUN DATSUN CPF02-A25V
FL06 SCISSOR LIFT UPRIGHT 66000-000
NUMBER VEHICLE DESCRIPTION MAKE MODEL
GS01 GAS SNIFFER ISC M40
GS02 GAS SNIFFER GFG G450-11465
NUMBER VEHICLE DESCRIPTION MAKE MODEL
HH01 HYDROHAMMER ARROW MASTER HJ1350
NUMBER VEHICLE DESCRIPTION MAKE MODEL
LD01 DOOSAN 200V DOOSAN MEGA 200V
LD02 KAWASAKI 90 Z4 KAWASAKI 90 Z4 ANGUS PALM CAB
LD03 KOMATSU 450 KOMATSU WA450-3
LD04 SKIP LOADER CASE 570 LXT SKIP SERIES 2
LD05 SKIP LOADER 02 CASE 570 NXT
LD06 JOHN DEERE LOADER JOHN DEERE 644K
LD07 JOHN DEERE LOADER JOHN DEERE 544K
NUMBER VEHICLE DESCRIPTION MAKE MODEL
MG01 CAT 140H CAT 140H
MG03 CAT 150 AWD CATERPILLAR 150AWD
**TOPCON GRADE CONTROL TOPCON
NUMBER VEHICLE DESCRIPTION MAKE MODEL
RL01 DYNAPAC DYNAPAC CC142
RL02 HAMM ROLLER HAMM HD12 VV
NUMBER VEHICLE DESCRIPTION MAKE MODEL
ST02 SERVICE TRUCK FORD F550
ST04 SERVICE TRUCK FORD F450
ST05 SERVICE TRUCK FORD F550
ST07 SERVICE TRUCK FORD F550
ST09 TOP KICK GMC C4500
ST10 SERVICE TRUCK CHEVY 2500
ST12 SERVICE TRUCK FORD F550 DRW
ST13 SERVICE TRUCK FORD RAPTOR F150
ST14 SERVICE TRUCK FORD F150 LARIAT
ST15 SERVICE TRUCK FORD F550
ST16 SERVICE TRUCK FORD F-150 XL
ST17 SERVICE TRUCK FORD 7500 DOMINATOR
COST
$100.00 / DAY
$100.00 / DAY
100.00$
45.00$
45.00$
65.00$
GAS SNIFFER
$ 35.00
$ 75.00
45.00$
45.00$
45.00$
45.00$
35.00$
35.00$
35.00$
35.00$
75.00$
COST
COST
$ 45.00
COST
$ 25.00
$ 45.00
ROLLERS
SERVICE TRUCKS
COST
MOTOGRADERS
45.00$
35.00$
35.00$
35.00$
45.00$
SCRAPERS
35.00$
45.00$
45.00$
45.00$
85.00$
COST
45.00$
85.00$
85.00$
HYDROHAMMER
LOADERS
COST
EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
20/ Construction Agreement/High Desert Underground, Inc./Project MS26-135
NUMBER VEHICLE DESCRIPTION MAKE MODEL
SC03 615C CAT 615C
SC04 627F CAT 627F
NUMBER VEHICLE DESCRIPTION MAKE MODEL
SN01 SMALL REED SCREEN REED SCREENALL RD-40B
SN02 BIG REED SCREEN REED RE150A
NUMBER VEHICLE DESCRIPTION MAKE MODEL
SS03* JOHN DEERE 333G JOHN DEERE 333G
NUMBER VEHICLE DESCRIPTION MAKE MODEL
SB01 LAYMOR LAYMOR 8B
SB02 TERRAMITE TSS38 TERRAMITE TSS38
SB03 TERRAMITE TERRAMITE TSS48
NUMBER VEHICLE DESCRIPTION MAKE MODEL
TC01 DIESEL
TC02 DIESEL
TC03 SOLAR ALLMAND ECLIPSE GSI269
TC04 SOLAR ALLMAND ECLIPSE GSI269
NUMBER VEHICLE DESCRIPTION MAKE MODEL
TL01 FLAT BED TRANSCRAFT
TL03 TILT TRAILER TRAIL KING
TL04 HEAVY HAUL MURRAY
TL05 STAKEBED APACHE TRAILER
TL06 END DUMP RANCH MAN
TL07 ROLLER TRAILER CARSON
TL08 DOVE TAIL TRAIL EZE
TL09 TRAILER TRAIL KING
TL10 NEW TILT TRAILER MARKSMAN
TL11 DITCHWITCH TRAILER 1999 DITCHWITCH
TL12 BIG TEX TRAILER BIGTX
TL13 TRASH TRAILER SPENCER UTILITY TRAILER
TL14 ZIEMAN TRAILER ZIEMAN
TL15 ASPHALT ZIPPER TRAILER WILSON
TL16 FORT IRWIN STORAGE TRAILER TIMPT
TL17 BIG TEX TRAILER 2019 BIGTX 14LX-12BK7KHJ-P4
TL18 TEXAS PRIDE TEXAS PRIDE GT82320KBP
NUMBER VEHICLE DESCRIPTION MAKE MODEL
TM01 AIR COMPRESSOR 01 95 LEROI INTERNATIONAL
TM02 AIR COMPRESSOR 02 INGERSOLL RAND
TM03 AIR COMPRESSOR 03 SPERCA
TM04 LIGHT TOWER TEREX AL4060DI-4MH
TM05 MIXER 01 MULITQUIP MC-94
TM06 MIXER 02 CROWN
TM07 MIXER 03 SPENCER UTILITY TRAILER
50.00$
20.00$
20.00$
30.00$
50.00$
TRAFFIC CONTROL (ARROW BOARDS)
TRAILERS
50.00$
50.00$
50.00$
COST
35.00$
$200.00 / DAY
$200.00 / DAY
$200.00 / DAY
20.00$
TRAILER MOUNTED EQUIPMENT
COST
130.00$
100.00$
COST
SCREENS
$ 225.00
SKID-STEERS (ATTACHMENTS AVAILABLE - BROOM, BREAKER, GRINDER ETC.)
STREET BROOM (SWEEPERS)
50.00$
30.00$
$200.00 / DAY
100.00$
45.00$
30.00$
30.00$
COST
COST
COST
COST
$ 45.00
50.00$
50.00$
50.00$
35.00$
30.00$
45.00$
40.00$
20.00$
20.00$
20.00$
$200.00 / DAY
35.00$
EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
21/ Construction Agreement/High Desert Underground, Inc./Project MS26-135 TM08 WELDER 01 LINCOLN SA 200
TM09 WELDER 02 LINCOLN SA 200
TM10 UTILITY TRAILER TEREX AL4060DI-4MH
TM11 DITCHWITCH 1330 MULITQUIP MC-94
TM12 TRAILER MTD PORT O POTTY CROWN
TM13 LIGHT TOWER SPENCER UTILITY TRAILER
TM14 LEEBOY TACK POT LEEBOY L00T
TM15 AIR COMPRESSOR CROWN
TM16 CONCRETE PUMP PUTZMEISTER TK1004
NUMBER VEHICLE DESCRIPTION MAKE MODEL
TR01 CREW VAN E350
TR02 FLAT BED INTERNATIONAL 4700
TR03 SPARE RANGER FORD RANGER
TR04 TRUCK TOYOTA TUNDRA
TR05 RANGER FORD RANGER
TR06 STAKEBED DODGE RAM
TR07 HEAVY HAUL PETERBILT 367
TR08 5 CY DUMP TRUCK 2002 CHEVY
TR09 10 WHEELER DUMP TRUCK PETERBILT PB348
NUMBER VEHICLE DESCRIPTION MAKE MODEL
WT02 2K - VOLVO VOLVO MII PLUS
WT03 4K - WHITE VOLVO
WT06 WATER WAGON MAGNUM MWT500
WT07 WATER TOWER 01 SONS
WT08 WATER TOWER 02
WT09 WATER TOWER 03 333 SPCNS - SE391148
WT10 6X6 FREIGHTLINER FREIGHTLINER M2C 106
WT11 INTERNATIONAL 4300 INTERNATIONAL 4300
NUMBER VEHICLE DESCRIPTION MAKE MODEL
VT01 VACTRON VACTRON PMD 00800DT
VT02 VACMASTER SPV800 6T3-W
VT03 VACTOR VERMEER LP873SDT
*NOTE:
**NOTE:
20.00$
$200.00 / DAY
$200.00 / DAY
50.00$
$200.00 / DAY
$200.00 / DAY
RATES SUBJECT TO CHANGE DUE TO STATE OF CALIFORNIA / FEDERAL RATE INCREASES / EQUIPMENT
ADDITIONAL OR DELETION
$50.00 + WELDER
30.00$
COST
WATERTRUCKS
50.00$
50.00$
50.00$
50.00$
CERTAIN EQUIPMENT REQUIRES SPECIAL ATTACHMENTS AND/OR HAULING THAT REQUIRES SPECIAL PERMITTING
25.00$
$200.00 / DAY
65.00$
45.00$
COST
VACCUM TRAILER (VACTOR)
50.00$
50.00$
45.00$
$200.00 / DAY
45.00$
TRUCKS
65.00$
20.00$
125.00$
COST
$50.00 + WELDER
45.00$
40.00$
45.00$
45.00$
EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
22/ Construction Agreement/High Desert Underground, Inc./Project MS26-135