21-0420_SANCON TECHNOLOGIES, INC._Agenda Report_E8City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Benjamin Siegel, City Manager
SUBMITTED BY: Charles View, Assistant City Manager
PREPARED BY: Michael Marquis P.E., Associate Civil Engineer
DATE: April 20, 2021
SUBJECT: Construction Contract for the Rosenbaum Lift Station Lining Project
(CIP 20701) with Sancon Technologies Inc.
RECOMMENDATION:
Approve and authorize the City Manager to execute a Construction Contract with
Sancon Technologies Inc. in the amount of $59,700 for the Rosenbaum Lift Station
Lining Project (CIP 20701).
EXECUTIVE SUMMARY:
The Rosenbaum Lift Station Lining Project is a budgeted capital improvement project to
rehabilitate the existing sewer lift station on Summer Walk Drive. The interior liner of the
wet well is delaminating from the sub-structure, exposing the concrete walls and
eventually the reinforcing steel to corrosive gases. Removal and replacement of the liner
under this project will protect the underlying reinforced concrete.
DISCUSSION/ANALYSIS:
Staff solicited bids from three qualified firms to remove and replace the failed liner. The
City received quotes from two firms. The results are summarized in the following table.
Firm Bid Amount 10% Contingency Budget Amount
Sancon Technologies
Inc.
$54,240 $5,460 $59,700
Zebron Contracting Inc. $57,500 $5,750 $63,250
Ayala No Bid --
4/20/2021
E8
City Council Agenda Report
April 20, 2021
Page 2 of 3
Staff has reviewed both bids and found them to be responsive to the City’s needs. Staff
recommends that the City Council award a Construction Contract (Attachment 1) to the
low bidder, Sancon Technologies Inc., for the project in the amount of $54,240. To
account for unforeseen conditions that may arise and could not have been ascertained
during the design phase, a 10% contingency for approved change orders is included in
the project budget, for a total not to exceed amount of $59,700.
The work to replace the liner requires other support work which adds to the total cost of
the project, estimated at $136,000, including the liner replacement by Sancon. Staff has
solicited bids for these items from different suppliers and specialty contractors, and all
within the signature authority of the City Manager. Individual contracts will be approved
as the work is needed. The table below lists the project elements, their cost, and the sub-
project cost totals.
Work Description
Budget
Amount
Sub-Project
Total
Install line stop to facilitate replacement of plug and check valves in
the time window allowed by the low flow period of 1:00 am - 5:00 am. $16,279
Excavation and Concreter Restoration for Line Stop $6,427
Install Line Stop $9,853
Replace existing defective plug and check valves to allow bypass
pumping operation to work. $19,022
Purchase Check & Plug vales $5,101
Pre-Assemble Check & Plug valves; and install over 2 nights. $3,485
Vactor Truck, Valve Replacement $4,950
Install Check & Plug Valves $5,487
Set traffic control and bypass pumping to allow dry working conditions
for liner installation. $41,296
Traffic Control, deliver & return K-Rails $4,697
Bypass Pumping Equipment Rental $16,376
Remove and Replace electrical connections, pumps, and
discharge piping. $8,079
Sewer Spill Watchman. $8,844
Vactor Truck - remove spent blast material. $1,650
Vactor Truck - initial clean wet well, w/ wash down. $1,650
Rosenbaum sewer lift station wet well relining. $59,664
Reline wet well interior $59,664
Grand Total $136,261 $136,261
City Council Agenda Report
April 20, 2021
Page 3 of 3
FISCAL IMPACT:
The total cost for the Rosenbaum Lift Station project is estimated at approximately
$136,000. There is sufficient funding within the Capital Improvement Project budget for
this project.
ENVIRONMENTAL IMPACT:
On March 26, 2021, a Notice of Exemption was filed with the County Clerk-Recorder
stating that the project is exempt from further review per California Environmental Quality
Act (CEQA) Guidelines, Class 1, Section 15301(b), Existing Facilities, and Class 2,
Section 15302(c), Replacement or Reconstruction.
PRIOR CITY COUNCIL REVIEW:
None.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
None.
NOTIFICATION:
Don Bunts, Santa Margarita Water District
Sancon Technologies Inc.
Zebron Contracting Inc.
ATTACHMENT:
Attachment 1: Construction Contract with Sancon Technologies Inc.
61147.02100\14019172.3
Updated March 2019 1
CITY OF SAN JUAN CAPISTRANO
CONSTRUCTION CONTRACT
ROSENBAUM LIFT STATION LINING PROJECT
1.PARTIES AND DATE.
This Contract is made and entered into this 6th day of April 2021, by and between the
City of San Juan Capistrano, a public agency of the State of California (rCitys) WdZ Sancon
Technologies, Inc. a California Corporation with its principal place of business at 5841 Engineer
Drive, Huntington Beach, CA 92649 (r<edjhWYjehs),City and Contractor are sometimes
_dZ_l_ZkWbbo h[\[hh[Z je Wi rIWhjos WdZ Yebb[Yj_l[bo Wi rIWhj_[is _d j^_i <edjhWYj,
2.RECITALS.
2.1 City. City is a public agency organized under the laws of the State of California,
with power to contract for services necessary to achieve its purpose.
2.2 Contractor. Contractor desires to perform and assume responsibility for the
provision of certain construction services required by the City on the terms and conditions set
forth in this Contract. Contractor represents that it is duly licensed and experienced in providing
Sewer Lift Station Rehabilitation and Lining related construction services to public clients, that it
and its employees or subcontractors have all necessary licenses and permits to perform the
services in the State of California, and that it is familiar with the plans of City. The following
license classifications are required for this Project: A.
2.3 Project. City desires to engage Contractor to render such services for the
Rosenbaum Lift Station Lining Project (rIhe‘[Yjs) Wi i[j \ehj^ _d j^_i <edjhWYj,
2.4 Project Documents & Certifications. Contractor has obtained, and delivers
concurrently herewith, a performance bond, a payment bond, and all insurance documentation,
as required by the Contract.
3.TERMS
3.1 Incorporation of Documents. This Contract includes and hereby incorporates in
full by reference the following documents, including all exhibits, drawings, specifications and
documents therein, and attachments and addenda thereto:
L[hl_Y[i-LY^[Zkb[ (>n^_X_j r:s)
IbWdi WdZ Lf[Y_\_YWj_edi (>n^_X_j r;s)
Lf[Y_Wb <edZ_j_edi (>n^_X_j r<s)
<edjhWYjehti <[hj_\_YWj[ K[]WhZ_d] Peha[hit <ecf[diWj_ed (>n^_X_j r=s)
IkXb_Y Pehai <edjhWYjeh K[]_ijhWj_ed <[hj_\_YWj_ed (>n^_X_j r>s)
IWoc[dj WdZ I[h\ehcWdY[ ;edZi (>n^_X_j r?s)
Federal Requirements (>n^_X_j r@s)
Addenda
Change Orders executed by the City
Latest Edition of the Standard Specifications for Public Works
Construction (The Greenbook), Excluding Sections 1-9
ATTACHMENT 1
61147.02100\14019172.3
Updated March 2019 2
Notice Inviting Bids, if any
Instructions to Bidders, if any
<edjhWYjehti ;_Z
3.2 <edjhWYjehti ;Wi_Y HXb_gation; Scope of Work. Contractor promises and agrees,
at its own cost and expense, to furnish to the City all labor, materials, tools, equipment,
services, and incidental and customary work necessary to fully and adequately complete the
Project, including all structures and facilities necessary for the Project or described in the
<edjhWYj (^[h[_dW\j[h iec[j_c[i h[\[hh[Z je Wi j^[ rPehas)* \eh W MejWb <edjhWYj Ih_Y[ Wi
specified pursuant to this Contract. All Work shall be subject to, and performed in accordance
with the above referenced documents, as well as the exhibits attached hereto and incorporated
herein by reference. The plans and specifications for the Work are further described in Exhibit
rBs WjjWY^[Z ^[h[je WdZ _dYehfehWj[Z ^[h[_d Xo j^_i h[\[hence. Special Conditions, if any,
relating to the Work are described in Exhibit r<s WjjWY^[Z ^[h[je WdZ _dYehfehWj[Z ^[h[_d Xo j^_i
reference.
3.2.1 Change in Scope of Work. Any change in the scope of the Work, method
of performance, nature of materials or price thereof, or any other matter materially affecting the
performance or nature of the Work shall not be paid for or accepted unless such change,
addition or deletion is approved in writing by a valid change order executed by the City. Should
Contractor request a change order due to unforeseen circumstances affecting the performance
of the Work, such request shall be made within five (5) business days of the date such
circumstances are discovered or shall waive its right to request a change order due to such
circumstances. If the Parties cannot agree on any change in price required by such change in
the Work, the City may direct the Contractor to proceed with the performance of the change on
a time and materials basis.
3.2.2 LkXij_jkj_edi-rHh >gkWbs. Pursuant to Public Contract Code Section
3400(b), the City may make a finding that designates certain products, things, or services by
specific brand or trade name. Unless specifically designated in this Contract, whenever any
material, process, or article is indicated or specified by grade, patent, or proprietary name or by
name of manufacturer, such Specifications shall be deemed to be used for the purpose of
facilitating the description of the material, process or article desired and shall be deemed to be
\ebbem[Z Xo j^[ mehZi reh [gkWb,s
Contractor may, unless otherwise stated, offer for substitution any material,
process or article which shall be substantially equal or better in every respect to that so
indicated or specified in this Contract. However, the City may have adopted certain uniform
standards for certain materials, processes and articles. Contractor shall submit requests,
together with substantiating data, \eh ikXij_jkj_ed e\ Wdo reh [gkWbs cWj[h_Wb* fheY[ii eh Whj_Yb[ de
later than thirty-five (35) days after award of the Contract. To facilitate the construction
schedule and sequencing, some requests may need to be submitted before thirty-five (35) days
a\j[h WmWhZ e\ <edjhWYj, Ihel_i_edi h[]WhZ_d] ikXc_ii_ed e\ reh [gkWbs h[gk[iji i^Wbb dej _d Wdo
mWo Wkj^eh_p[ Wd [nj[di_ed e\ j_c[ \eh f[h\ehcWdY[ e\ j^_i <edjhWYj, B\ W fhefei[Z reh [gkWbs
substitution request is rejected, Contractor shall be responsible for providing the specified
material, process or article. The burden of proof as to the equality of any material, process or
article shall rest with Contractor.
The City has the complete and sole discretion to determine if a material, process
or articb[ _i Wd reh [gkWbs cWj[h_Wb* fheY[ii eh Whj_Yb[ j^Wj cWo X[ ikXij_jkj[Z, =WjW h[gk_h[Z je
ikXijWdj_Wj[ h[gk[iji \eh ikXij_jkj_edi e\ Wd reh [gkWbs cWj[h_Wb* fheY[ii eh Whj_Yb[ ZWjW i^Wbb
include a signed affidavit from Contractor stating that, and descriX_d] ^em* j^[ ikXij_jkj[Z reh
61147.02100\14019172.3
Updated March 2019 3
[gkWbs cWj[h_Wb* fheY[ii eh Whj_Yb[ _i [gk_lWb[dj je j^Wj if[Y_\_[Z _d [l[ho mWo [nY[fj Wi b_ij[Z ed
the affidavit. Substantiating data shall include any and all illustrations, specifications, and other
relevant data includin] YWjWbe] _d\ehcWj_ed m^_Y^ Z[iYh_X[i j^[ h[gk[ij[Z ikXij_jkj[Z reh [gkWbs
cWj[h_Wb* fheY[ii eh Whj_Yb[* WdZ ikXijWdj_Wj[i j^Wj _j _i Wd reh [gkWbs je j^[ cWj[h_Wb* fheY[ii eh
article. The substantiating data must also include information regarding the durability and
b_\[YoYb[ Yeij e\ j^[ h[gk[ij[Z ikXij_jkj[Z reh [gkWbs cWj[h_Wb* fheY[ii eh Whj_Yb[, ?W_bkh[ je
submit all the required substantiating data, including the signed affidavit, to the City in a timely
fashion will result in the rejection of the proposed substitution.
Contractor shall bear all of the Cityti Yeiji WiieY_Wj[Z m_j^ j^[ h[l_[m e\
ikXij_jkj_ed h[gk[iji, <edjhWYjeh i^Wbb X[ h[ifedi_Xb[ \eh Wbb Yeiji h[bWj[Z je W ikXij_jkj[Z reh
[gkWbs cWj[h_Wb* fheY[ii eh Whj_Yb[, <edjhWYjeh _i Z_h[Y ted to the Special Conditions (if any) to
review any findings made pursuant to Public Contract Code section 3400.
3.3 Period of Performance and Liquidated Damages. Contractor shall perform and
complete all Work under this Contract within 15 working days, beginning the effective date of
j^[ Gej_Y[ je IheY[[Z (r<edjhWYj M_c[s), <edjhWYjeh i^Wbb f[h\ehc _ji Peha _d ijh_Yj WYYehZWdY[
with any completion schedule, construction schedule or project milestones developed by the
City. Such schedules or milestones mWo X[ _dYbkZ[Z Wi fWhj e\ >n^_X_ji r:s eh r;s WjjWY^[Z
hereto, or may be provided separately in writing to Contractor. Contractor agrees that if such
Work is not completed within the aforementioned Contract Time and/or pursuant to any such
completion schedule, construction schedule or project milestones developed pursuant to
provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer
damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as
fixed and liquidated damages the sum of one hundred dollars ($100) per day for each and every
calendar day of delay beyond the Contract Time or beyond any completion schedule,
construction schedule or Project milestones established pursuant to the Contract.
3.4 Standard of Performance; Performance of Employees. Contractor shall perform
all Work under this Contract in a skillful and workmanlike manner, and consistent with the
standards generally recognized as being employed by professionals in the same discipline in
the State of California. Contractor represents and maintains that it is skilled in the professional
calling necessary to perform the Work. Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Work assigned to them.
Finally, Contractor represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Work, including any required business license, and that such licenses and approvals shall be
maintained throughout the term of this Contract. As provided for in the indemnification
provisions of this Contract, Contractor shall perform, at its own cost and expense and without
reimbursement from the City, any work necessary to correct errors or omissions which are
YWki[Z Xo <edjhWYjehti \W_bkh[ je Yecfbo m_j^ j^[ ijWdZWhZ e\ YWh[ fhel_Z[Z \eh ^[h[_d, :do
employee who is determined by the City to be uncooperative, incompetent, a threat to the safety
of persons or the Work, or any employee who fails or refuses to perform the Work in a manner
acceptable to the City, shall be promptly removed from the Project by Contractor and shall not
be re-employed on the Work.
3.5 Control and Payment of Subordinates; Contractual Relationship. City retains
Contractor on an independent contractor basis and Contractor is not an employee of City. Any
additional personnel performing the work governed by this Contract on behalf of Contractor shall
Wj Wbb j_c[i X[ kdZ[h <edjhWYjehti [nYbki_l[ Z_h[Yj_ed WdZ Yedjheb, <edjhWYjeh i^Wbb fWo Wbb
wages, salaries, and other amounts due such personnel in connection with their performance
under this Contract and as required by law. Contractor shall be responsible for all reports and
61147.02100\14019172.3
Updated March 2019 4
obligations respecting such additional personnel, including, but not limited to: social security
jWn[i* _dYec[ jWn m_j^^ebZ_d]* kd[cfbeoc[dj _dikhWdY[* WdZ meha[hit Yecf[diWj_ed _dikhWdY[,
3.6 Cityti ;Wi_Y HXb_]Wj_ed. City agrees to engage and does hereby engage
Contractor as an independent contractor to furnish all materials and to perform all Work
according to the terms and conditions herein contained for the sum set forth above. Except as
otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the
satisfactory performance by Contractor of the services and obligations required by this Contract,
the below-referenced compensation in accordance with compensation provisions set forth in the
Contract.
3.7 Compensation and Payment.
3.7.1 Amount of Compensation. As consideration for performance of the Work
required herein, City agrees to pay Contractor the Total Contract Price Fifty Four Thousand Two
Hundred Forty Dollars ($54,240.00) (rMejWb <edjhWYj Ih_Y[s) fhel_Z[Z j^Wj ikY^ Wcekdj i^Wbb X[
subject to adjustment pursuant to the applicable terms of this Contract or written change orders
approved and signed in advance by the City.
3.7.2 Payment of Compensation. If the Work is scheduled for completion in
thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon
completion and approval by City of the Work. If the Work is scheduled for completion in more
than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for
herein. On or before the fifth (5th) day of each month, Contractor shall submit to the City an
itemized application for payment in the format supplied by the City indicating the amount of
Work completed since commencement of the Work or since the last progress payment. These
applications shall be supported by evidence which is required by this Contract and such other
documentation as the City may require. The Contractor shall certify that the Work for which
payment is requested has been done and that the materials listed are stored where indicated.
Contractor may be required to furnish a detailed schedule of values upon request of the City
and in such detail and form as the City shall request, showing the quantities, unit prices,
overhead, profit, and all other expenses involved in order to provide a basis for determining the
amount of progress payments.
3.7.3 Prompt Payment. City shall review and pay all progress payment
requests in accordance with the provisions set forth in Section 20104.50 of the California Public
Contract Code. However, no progress payments will be made for Work not completed in
accordance with this Contract. Contractor shall comply with all applicable laws, rules and
regulations relating to the proper payment of its employees, subcontractors, suppliers or others.
3.7.4 Contract Retentions. From each approved progress estimate, five percent
(5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All
Contract retention shall be released and paid to Contractor and subcontractors pursuant to
California Public Contract Code Section 7107.
3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct
from each progress payment an amount necessary to protect City from loss because of: (1)
liquidated damages which have accrued as of the date of the application for payment; (2) any
sums expended by the City in f[h\ehc_d] Wdo e\ <edjhWYjehti eXb_]Wj_edi kdZ[h j^[ <edjhWYj
which Contractor has failed to perform or has performed inadequately; (3) defective Work not
remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be
completed for the unpaid balance of the Total Contract Price or within the scheduled completion
61147.02100\14019172.3
Updated March 2019 5
date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from
the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and
sufficient documentation as required by the Contract or by City during the prosecution of the
Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10)
any sums representing expenses, losses, or damages as determined by the City, incurred by
the City for which Contractor is liable under the Contract; and (11) any other sums which the
City is entitled to recover from Contractor under the terms of the Contract or pursuant to state
law, including Section 1727 of the California Labor Code. The failure by the City to deduct any
of these sums from a progress payment shall not constitute a waiver of the Cityti h_]^j je ikY^
sums.
3.7.6 Substitutions for Contract Retentions. In accordance with California
Public Contract Code Section 22300, the City will permit the substitution of securities for any
monies withheld by the City to ensure performance under the Contract. At the request and
expense of Contractor, securities equivalent to the amount withheld shall be deposited with the
City, or with a state or federally chartered bank in California as the escrow agent, and thereafter
the City shall then pay such monies to Contractor as they come due. Upon satisfactory
completion of the Contract, the securities shall be returned to Contractor. For purposes of this
L[Yj_ed WdZ L[Yj_ed 001.. e\ j^[ IkXb_Y <edjhWYj <eZ[* j^[ j[hc riWj_i\WYjeho Yecfb[j_ed e\ j^[
YedjhWYjs i^Wbb c[Wd j^[ j_c[ j^[City has issued written final acceptance of the Work and filed
a Notice of Completion as required by law and provisions of this Contract. Contractor shall be
the beneficial owner of any securities substituted for monies withheld and shall receive any
interest thereon. The escrow agreement used for the purposes of this Section shall be in the
form provided by the City.
3.7.7 Title to Work. As security for partial, progress, or other payments, title to
Work for which such payments are made shall pass to the City at the time of payment. To the
extent that title has not previously been vested in the City by reason of payments, full title shall
pass to the City at delivery of the Work at the destination and time specified in this Contract.
Such transferred title shall in each case be good, free and clear from any and all security
interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge,
hypothecate, or otherwise encumber the items in any manner that would result in any lien,
security interest, charge, or claim upon or against said items. Such transfer of title shall not
imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply
with the Contract and shall not relieve Contractor of responsibility for any loss of or damage to
items.
3.7.8 Labor and Material Releases. Contractor shall furnish City with labor and
material releases from all subcontractors performing work on, or furnishing materials for, the
Work governed by this Contract prior to final payment by City.
3.7.9 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations,
M_jb[ 6* L[Yj_ed /4... [j i[g,* (rIh[lW_b_d] PW][ EWmis)* m^_Y^ h[gk_h[ j^[ fWoc[dj e\
prevailing wage rates and the performance of other requirements ed rfkXb_Y mehais WdZ
rcW_dj[dWdY[s fhe‘[Yji, L_dY[ j^[ L[hl_Y[i Wh[ X[_d] f[h\ehc[Z Wi fWhj e\ Wd Wffb_YWXb[ rfkXb_Y
mehais eh rcW_dj[dWdY[s fhe‘[Yj* Wi Z[\_d[Z Xo j^[ Ih[lW_b_d] PW][ EWmi* WdZ since the total
compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage
Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in
effect at the commencement of this Contract upon request. Contractor shall make copies of the
prevailing rates of per diem wages for each craft, classification or type of worker needed to
execute the Services available to interested parties upon request and shall post copies at
61147.02100\14019172.3
Updated March 2019 6
<edjhWYjehti fh_dY_fWb fbWY[ e\ Xki_d[ii WdZ at the project site. Contractor shall defend,
indemnify and hold the City, its officials, officers, employees and agents free and harmless from
any claim or liability arising out of any failure or alleged failure to comply with the Prevailing
Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar
day or portion thereof for each worker paid less than the prevailing wage rates.
3.7.10 Apprenticeable Crafts. When Contractor employs workmen in an
apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of
the California Labor Code with respect to the employment of properly registered apprentices
upon public works. The primary responsibility for compliance with said section for all
apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is
determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit
as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or
such greater amount as provided by law.
3.7.11 Hours of Work. Contractor is advised that eight (8) hours labor
Yedij_jkj[i W b[]Wb ZWoti meha, IkhikWdj je L[Yj_ed /6/1 e\ j^[ <Wb_\ehd_W EWXeh <eZ[*
Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted
to work more than eight (8) hours in any one calendar day and forty (40) hours in any one
calendar week, except when payment for overtime is made at not less than one and one-half
(1-1/2) times the basic rate for that worker.
3.7.12 Payroll Records. 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 by him or her in
connection with the public work. The payroll records shall be certified and shall be available for
inspection at all reasonable hours at the principal office of Contractor in the manner provided in
Labor Code section 1776. In the event of noncompliance with the requirements of this section,
Contractor shall have 10 days in which to comply subsequent to receipt of written notice
specifying in what respects such Contractor must comply with this section. Should
noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to City,
forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until
strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor
Commissioner. A contractor who is found to have violated the provisions of law regarding
wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works
contracts for a period of one to three years as determined by the Labor Commissioner. Upon
the request of the Division of Apprenticeship Standards or the Division of Labor Standards
Enforcement, such penalties shall be withheld from progress payments then due. The
responsibility for compliance with this section is on Contractor. The requirement to submit
certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4
shall not apply to work performed on a public works project that is exempt pursuant to the small
project exemption specified in Labor Code Section 1771.4.
3.7.13 Contractor and Subcontractor Registration. Pursuant to Labor Code
sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a
bid proposal, or enter into a contract to perform public work must be registered with the
Department of Industrial Relations. No bid will be accepted nor any contract entered into
m_j^ekj fhee\ e\ j^[ YedjhWYjehti WdZ ikXYedjhWYjehit Ykhh[dj h[]_ijhWj_ed m_j^ j^[ =[fWhjc[dj e\
Industrial Relations to perform public work. Contractor is directed to review, fill out and execute
the Public Pehai <edjhWYjeh K[]_ijhWj_ed <[hj_\_YWj_ed WjjWY^[Z ^[h[je Wi >n^_X_j r>s fh_eh je
contract execution. Notwithstanding the foregoing, the contractor registration requirements
61147.02100\14019172.3
Updated March 2019 7
mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a
public works project that is exempt pursuant to the small project exemption specified in Labor
Code Sections 1725.5 and 1771.1.
3.7.14 Labor Compliance; Stop Orders. This Project is subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be the
<edjhWYjehti ieb[ h[ifedi_X_b_jo je [lWbkWj[ WdZ fWo j^[ Yeij e\ Yecfbo_d] m_j^ Wbb bWXeh
compliance requirements under this Contract and applicable law. Any stop orders issued by the
Department of Industrial Relations against Contractor or any subcontractor that affect
<edjhWYjehti f[h\ehcWdY[ e\ Peha* _dYbkZ_d] Wdo Z[bWo* i^Wbb X[ <edjhWYjehti ieb[ h[ifedi_X_b_jo,
Any delay arising out of or resulting from such stop orders shall be considered Contractor
caused delay subject to any applicable liquidated damages and shall not be compensable by
the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees
and agents free and harmless from any claim or liability arising out of stop orders issued by the
Department of Industrial Relations against Contractor or any subcontractor.
3.8 Performance of Work; Jobsite Obligations.
3.8.1 Water Quality Management and Compliance.
3.8.1.1 Water Quality Management and Compliance. Contractor
shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance
with all local, state and federal laws, rules and regulations that may impact, or be implicated by
the performance of the Work including, without limitation, all applicable provisions of the Federal
Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality
Control Act (Cal Water Code §§ 13000-14950); local ordinances regulating discharges of storm
water; and any and all regulations, policies, or permits issued pursuant to any such authority
regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality
Control Act, to any ground or surface water in the State.
3.8.1.2 Compliance with the Statewide Construction General
Permit. Contractor shall comply with all conditions of the most recent iteration of the National
Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated
with Construction Activity, issued by the California State Water Resources Control Board
(rI[hc_js), Bj i^Wbb X[ <edjhWYjehti ieb[ h[ifedi_X_b_jo je \_b[ W Gej_Y[ e\ Bdj[dj WdZ fheYkh[
coverage under the Permit for all construction activity which results in the disturbance of more
than one acre of total land area or which is part of a larger common area of development or
sale. Prior to initiating work, Contractor shall be solely responsible for preparing and
implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit.
Contractor shall be responsible for procuring, implementing and complying with the provisions of
the Permit and the SWPPP, including the standard provisions, and monitoring and reporting
requirements as regk_h[Z Xo j^[ I[hc_j, M^[ I[hc_j h[gk_h[i j^[ LPIII je X[ W rb_l_d]
ZeYkc[djs j^Wj Y^Wd][i Wi d[Y[iiWho je c[[j j^[ YedZ_j_edi WdZ h[gk_h[c[dji e\ j^[ ‘eX i_j[
as it progresses through difference phases of construction and is subject to different weather
YedZ_j_edi, Bj i^Wbb X[ <edjhWYjehti ieb[ h[ifedi_X_b_jo je kfZWj[ j^[ LPIII Wi d[Y[iiWho je
address conditions at the project site.
3.8.1.3 Other Water Quality Rules Regulations and Policies.
Contractor shall comply with the lawful requirements of any applicable municipality, drainage
City, or local agency regarding discharges of storm water to separate storm drain systems or
other watercourses under their jurisdiction, including applicable requirements in municipal storm
water management programs.
61147.02100\14019172.3
Updated March 2019 8
3.8.1.4 Cost of Compliance. Storm, surface, nuisance, or other
waters may be encountered at various times during construction of The Work. Therefore, the
Contractor, by submitting a Bid, hereby acknowledges that it has investigated the risk arising
from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities
arising therefrom.
3.8.1.5 Liability for Non-Compliance. Failure to comply with the
Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this
Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its
officials, officers, employees, volunteers and agents for any alleged violations. In addition, City
may seek damages from Contractor for any delay in completing the Work in accordance with
j^[ <edjhWYj* _\ ikY^ Z[bWo _i YWki[Z Xo eh h[bWj[Z je <edjhWYjehti \W_bkh[ je Yecfbo m_j^ j^[
Permit.
3.8.1.6 Reservation of Right to Defend. City reserves the right to
defend any enforcement action brought against the City \eh <edjhWYjehti \W_bkh[ je Yecfbo m_j^
the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the
indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to
reimburse the City for the costs (including the Cityti Wjjehd[oti \[[i) WiieY_Wj[Z m_j^* Wdo
settlement reached between the City and the relevant enforcement entity.
3.8.1.7 Training. In addition to the standard of performance
requirements set forth in paragraph 3.4, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Work assigned to them
without impacting water quality in violation of the laws, regulations and policies described in
paragraph 3.8.1. Contractor further warrants that it, its employees and subcontractors will
receive adequate training, as determined by City, regarding the requirements of the laws,
regulations and policies described in paragraph 3.8.1 as they may relate to the Work provided
under this Agreement. Upon request, City will provide the Contractor with a list of training
programs that meet the requirements of this paragraph.
3.8.2 Safety. Contractor shall execute and maintain its work so as to avoid
injury or damage to any person or property. Contractor shall comply with the requirements of
the specifications relating to safety measures applicable in particular operations or kinds of
work. In carrying out its Work, Contractor shall at all times be in compliance with all applicable
local, state and federal laws, rules and regulations, and shall exercise all necessary precautions
for the safety of employees appropriate to the nature of the Work and the conditions under
which the Work is to be performed. Safety precautions as applicable shall include, but shall not
be limited to, adequate life protection and lifesaving equipment; adequate illumination for
underground and night operations; instructions in accident prevention for all employees, such as
machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space
procedures, trenching and shoring, fall protection and other safety devices, equipment and
wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and
adequate facilities for the proper inspection and maintenance of all safety measures.
Furthermore, Contractor shall prominently display the names and telephone numbers of at least
two medical doctors practicing in the vicinity of the Project, as well as the telephone number of
the local ambulance service, adjacent to all telephones at the Project site.
3.8.3 Laws and Regulations. Contractor shall keep itself fully informed of and
in compliance with all local, state and federal laws, rules and regulations in any manner
affecting the performance of the Contract or the Work, including all Cal/OSHA requirements,
and shall give all notices required by law. Contractor shall be liable for all violations of such
61147.02100\14019172.3
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laws and regulations in connection with Work. If Contractor observes that the drawings or
specifications are at variance with any law, rule or regulation, it shall promptly notify the City in
writing. Any necessary changes shall be made by written change order. If Contractor performs
any work knowing it to be contrary to such laws, rules and regulations and without giving written
notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a
public entity of the State of California subject to certain provisions of the Health & Safety Code,
Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and
agreed that all provisions of the law applicable to the public contracts of a municipality are a part
of this Contract to the same extent as though set forth herein and will be complied with.
Contractor shall defend, indemnify and hold City, its officials, officers, employees and agents
free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or
liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.8.4 Permits and Licenses. Contractor shall be responsible for securing City
permits and licenses necessary to perform the Work described herein, including, but not limited
to, any required business license. While Contractor will not be charged a fee for any City
permits, Contractor shall pay the Cityti Xki_d[ii b_Y[di[ \[[, if any. Any ineligible contractor or
subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on
this Project.
3.8.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the
Work governed by this Contract entails excavation of any trench or trenches five (5) feet or
more in depth, Contractor shall comply with all applicable provisions of the California Labor
Code, including Section 6705. To this end, Contractor shall submit for Cityti h[l_[m WdZ
approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to
be made for worker protection from the hazard of caving ground during the excavation of such
trench or trenches. If such plan varies from the shoring system standards, the plan shall be
prepared by a registered civil or structural engineer.
3.8.6 Hazardous Materials and Differing Conditions. As required by California
Public Contract Code Section 7104, if this Contract involves digging trenches or other
excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly,
and prior to disturbance of any conditions, notify City of: (1) any material discovered in
excavation that Contractor believes to be a hazardous waste that is required to be removed to a
Class I, Class II or Class III disposal site; (2) subsurface or latent physical conditions at the site
differing from those indicated by City; and (3) unknown physical conditions of an unusual nature
at the site, significantly different from those ordinarily encountered in such contract work. Upon
notification, City shall promptly investigate the conditions to determine whether a change order
is appropriate. In the event of a dispute, Contractor shall not be excused from any scheduled
completion date and shall proceed with all Work to be performed under the Contract, but shall
retain all rights provided by the Contract or by law for making protests and resolving the dispute.
3.8.7 Underground Utility Facilities. To the extent required by Section 4215 of
the California Government Code, City shall compensate Contractor for the costs of: (1) locating
and repairing damage to underground utility facilities not caused by the failure of Contractor to
exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in
the construction drawings; and (3) equipment necessarily idled during such work. Contractor
shall not be assessed liquidated damages for delay caused by failure of City to provide for
removal or relocation of such utility facilities.
3.8.8 Air Quality. Contractor must fully comply with all applicable laws, rules
and regulations in furnishing or using equipment and/or providing services, including, but not
61147.02100\14019172.3
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limited to, emissions limits and permitting requirements imposed by the California Air Resources
Board (CARB). Although CARB limits and requirements are more broad, Contractor shall
specifically be aware of their application to "portable equipment", which definition is considered
by CARB to include any item of equipment with a fuel-powered engine. Contractor shall
indemnify City against any fines or penalties imposed by CARB, or any other governmental or
regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its
subcontractors, or others for whom Contractor is responsible under its indemnity obligations
provided for in this Agreement.
3.8.9 State Recycling Mandates. Contractor shall comply with State
Recycling Mandates. Any recyclable materials/debris collected by the contractor that can be
feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or
recycling.
3.9 Completion of Work. When Contractor determines that it has completed the
Work required herein, Contractor shall so notify City in writing and shall furnish all labor and
material releases required by this Contract. City shall thereupon inspect the Work. If the Work
is not acceptable to the City, the City shall indicate to Contractor in writing the specific portions
or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it
has completed the incomplete or unsatisfactory Work, Contractor may request a reinspection by
the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract
Price remaining to be paid, less any amount which City may be authorized or directed by law to
retain. Payment of retention proceeds due to Contractor shall be made in accordance with
Section 7107 of the California Public Contract Code.
3.10 Claims; Government Code Claim Compliance.
3.10.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California
Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial
supervised mediation, and judicial arbitration to resolve disputes on construction claims of
$375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code
prescribes a process for negotiation and mediation to resolve disputes on construction claims.
The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the
California Public Contract Code. This Section shall be construed to be consistent with said
statutes.
3.10.2 Claims. For purposes of this Section* r<bW_cs c[Wdi W i[fWhWj[ Z[cWdZ
by the Contractor, after a change order duly requested in accordance with the terms of this
Contract has been denied by the City, for (A) a time extension, (B) payment of money or
damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or
(C) an amount the payment of which is disputed by the City. : r<bW_cs Ze[i dej _dYbkZ[ Wdo
demand for payment for which the Contractor has failed to provide notice, request a change
order, or otherwise failed to follow any procedures contained in the Contract Documents.
Claims governed by this Section may not be filed unless and until the Contractor completes all
procedures for giving notice of delay or change and for the requesting of a time extension or
change order, including but not necessarily limited to the change order procedures contained
herein* WdZ <edjhWYjehti h[gk[ij \eh W Y^Wd][ ^Wi X[[d Z[d_[Z _d m^eb[ eh _d fWhj, <bW_ci
governed by this Section must be filed no later than fourteen (14) days after a request for
change has been denied in whole or in part or after any other event giving rise to the Claim.
The Claim shall be submitted in writing to the City and shall include on its first page the following
_d /4 fe_dj YWf_jWb \edj8 rMABL BL : <E:BF,s ?khj^[hceh[* j^[ YbW_c i^Wbb _dYbkZ[ j^[ ZeYkc[dji
necessary to substantiate the claim. Nothing in this Section is intended to extend the time limit
61147.02100\14019172.3
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or supersede notice requirements otherwise provided by contract for the filing of claims,
including all requirements pertaining to compensation or payment for extra Work, disputed
Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any
claims or subsequent lawsuits for compensation or payment thereon.
3.10.3 Supporting Documentation. The Contractor shall submit all claims in the
following format:
3.10.3.1 Summary of claim merit and price, reference Contract
Document provisions pursuant to which the claim is made
3.10.3.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
3.10.3.3 Chronology of events and correspondence
3.10.3.4 Analysis of claim merit
3.10.3.5 Analysis of claim cost
3.10.3.6 Time impact analysis in CPM format
3.10.3.7 B\ <edjhWYjehti claim is based in whole or in part on an
allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor
shall provide a summary of the percentage of the claim subject to design errors or omissions
and shall obtain a certificate of merit in support of the claim of design errors and omissions.
3.10.3.8 Cover letter and certification of validity of the claim,
including any claims from subcontractors of any tier, in accordance with Government Code
section 12650 et seq.
3.10.4 Cityti K[ifedi[. Upon receipt of a claim pursuant to this Section, City
shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall
provide the Contractor a written statement identifying what portion of the claim is disputed and
what portion is undisputed. Any payment due on an undisputed portion of the claim will be
processed and made within 60 days after the public entity issues its written statement.
3.10.4.1 If City needs approval from its governing body to provide
the Contractor a written statement identifying the disputed portion and the undisputed portion of
the claim, and the governing body does not meet within the 45 days or within the mutually
agreed to extension of time following receipt of a claim sent by registered mail or certified mail,
return receipt requested, City shall have up to three days following the next duly publicly noticed
61147.02100\14019172.3
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meeting of the governing body after the 45-day period, or extension, expires to provide the
Contractor a written statement identifying the disputed portion and the undisputed portion.
3.10.4.2 Within 30 days of receipt of a claim, City may request in
writing additional documentation supporting the claim or relating to defenses or claims City may
have against the Contractor. If additional information is thereafter required, it shall be requested
and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
3.10.4.3 Cityti mh_jj[d h[ifedi[ je j^[ YbW_c* Wi \khj^[h
documented, shall be submitted to the Contractor within 30 days (if the claim is less than
$50,000, within 15 days) after receipt of the further documentation, or within a period of time no
greater than that taken by the Contractor in producing the additional information or requested
documentation, whichever is greater.
3.10.5 Meet and Confer. If the Contractor disputes Cityti mh_jj[d h[ifedi[* eh
City fails to respond within the time prescribed, the Contractor may so notify City, in writing,
either within 15 days of receipt of Cityti h[ifedi[ or within 15 days of Cityti \W_bkh[ je h[ifedZ
within the time prescribed, respectively, and demand an informal conference to meet and confer
for settlement of the issues in dispute. Upon receipt of a demand, City shall schedule a meet
and confer conference within 30 days for settlement of the dispute.
3.10.6 Mediation. Within 10 business days following the conclusion of the meet
and confer conference, if the claim or any portion of the claim remains in dispute, City shall
provide the Contractor a written statement identifying the portion of the claim that remains in
dispute and the portion that is undisputed. Any payment due on an undisputed portion of the
claim shall be processed and made within 60 days after City issues its written statement. Any
disputed portion of the claim, as identified by the Contractor in writing, shall be submitted to
nonbinding mediation, with City and the Contractor sharing the associated costs equally. 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, unless the parties agree to select a mediator
at a later time.
3.10.6.1 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.
3.10.6.2 For purposes of this section, mediation includes any
nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in
which an independent third party or board assists the Parties in dispute resolution through
negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the
timeframes in this section.
3.10.6.3 Unless otherwise agreed to by City and the Contractor in
writing, the mediation conducted pursuant to this section shall excuse any further obligation
under Section 20104.4 to mediate after litigation has been commenced.
3.10.6.4 The mediation shall be held no earlier than the date the
Contractor completes the Work or the date that the Contractor last performs Work, whichever is
earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new
unrelated claim arises after mediation is completed.
61147.02100\14019172.3
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3.10.7 Procedures After Mediation. If following the mediation, the claim or any
portion remains in dispute, the Contractor must file a claim pursuant to 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 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 the Contractor submits his or her
written claim pursuant to subdivision (a) until the time the claim is denied, including any period
of time utilized by the meet and confer conference or mediation.
3.10.8 Civil Actions. The following procedures are established for all civil actions
filed to resolve claims subject to this Section:
3.10.8.1 Within 60 days, but no earlier than 30 days, following the
filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless
waived by mutual stipulation of both parties or unless mediation was held prior to
commencement of the action in accordance with Public Contract Code section 9204 and the
terms of these procedures. The mediation process shall provide for the selection within 15 days
by both parties of a disinterested third person as mediator, shall be commenced within 30 days
of the submittal, and shall be concluded within 15 days from the commencement of the
mediation unless a time requirement is extended upon a good cause showing to the court.
3.10.8.2 If the matter remains in dispute, the case shall be
submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of
Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code.
The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title
3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this
subdivision consistent with the rules pertaining to judicial arbitration.
3.10.8.3 In addition to Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible,
be experienced in construction law, and (B) any party appealing an arbitration award who does
not obtain a more favorable judgment shall, in addition to payment of costs and fees under that
Y^Wfj[h* Wbie fWo j^[ Wjjehd[oti \[[i ed Wff[Wb e\ j^[ ej^[h fWhjo,
3.10.9 Government Code Claims. In addition to any and all contract
requirements pertaining to notices of and requests for compensation or payment for extra work,
disputed work, claims and/or changed conditions, Contractor must comply with the claim
procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against
the City. Such Government Code claims and any subsequent lawsuit based upon the
Government Code claims shall be limited to those matters that remain unresolved after all
procedures pertaining to extra work, disputed work, claims, and/or changed conditions have
been followed by Contractor. If no such Government Code claim is submitted, or if any
prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor
shall be barred from bringing and maintaining a valid lawsuit against the City. A Government
Code claim must be filed no earlier than the date the work is completed or the date the
Contractor last performs work on the Project, whichever occurs first. A Government Code claim
shall be inclusive of all unresolved claims unless a new unrelated claim arises after the
Government Code claim is submitted.
3.10.10 Non-Waiver. Cityti \W_bkh[ je h[ifedZ je W YbW_c \hec j^[
Contractor within the time periods described in this Section or to otherwise meet the time
requirements of this Section shall result in the claim being deemed rejected in its entirety. Cityti
61147.02100\14019172.3
Updated March 2019 14
failure to respond shall not waive Cityti h_]^ji je Wdo ikXi[gk[dj fheY[Zkh[i \eh j^[ h[iebkj_ed
of disputed claims.
3.11 Loss and Damage. Except as may otherwise be limited by law, Contractor shall
be responsible for all loss and damage which may arise out of the nature of the Work agreed to
herein, or from the action of the elements, or from any unforeseen difficulties which may arise or
be encountered in the prosecution of the Work until the same is fully completed and accepted
by City. In the event of damage proximately caused by an Act of God, as defined by Section
7105 of the Public Contract Code, the City may terminate this Contract pursuant to Section
3.17.3; provided, however, that the City needs to provide Contractor with only one (1) day
advanced written notice.
3.12 Indemnification.
3.12.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, employees, agents and
authorized volunteers free and harmless from any and all claims, demands, causes of action,
suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements,
loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful
Z[Wj^* (Yebb[Yj_l[bo* r<bW_cis) _d Wdo cWdd[h Wh_i_d] ekj e\* f[hjW_d_d] je* eh _dY_Z[dj je Wdy
alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers,
employees, subcontractors, consultants or agents in connection with the performance of the
<edjhWYjehti i[hl_Y[i* j^[ Ihe‘[Yj eh j^_i :]h[[c[dj* _dYbkZ_d] m_thout limitation the payment of
all consequential damages, expert witness fees and attorneyst fees and other related costs and
expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782,
<edjhWYjehti _dZ[cd_jo eXb_]Wj_ed i^all not apply to liability for damages for death or bodily injury
to persons, injury to property, or any other loss, damage or expense arising from the sole or
active negligence or willful misconduct of the City or the Cityti W][dji* i[hlWdji* eh _dZ[f[dZ[nt
contractors who are directly responsible to the City, or for defects in design furnished by those
persons.
3.12.2 Additional Indemnity Obligations. Contractor shall defend, with
counsel of Cityti Y^eei_d] WdZ Wj <edjhWYjeh’i emd Yeij* [nf[di[ WdZ h_ia, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor
shall also reimburse City for the cost of any settlement paid by City or its officials, employees,
agents and authorized volunteers as part of any such claim, suit, action or other proceeding.
Such reimbursement shall include payment for City's attorney's fees and costs, including expert
witness fees. Contractor shall reimburse City and its officials, employees, agents and
authorized volunteers, for any and all legal expenses and costs incurred by each of them in
connection therewith or in enforcing the indemnity herein provided. Contractor's obligation to
indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials,
employees, agents and authorized volunteers.
3.13 Insurance.
3.13.1 Time for Compliance. Contractor shall not commence Work under
this Contract until it has provided evidence satisfactory to the City that it has secured all
insurance required under this section. In addition, Contractor shall not allow any subcontractor
to commence work on any subcontract until it has provided evidence satisfactory to the City that
61147.02100\14019172.3
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the subcontractor has secured all insurance required under this section. Failure to provide and
maintain all required insurance shall be grounds for the City to terminate this Contract for cause.
3.13.2 Minimum Requirements. Contractor shall, at its expense, procure
and maintain for the duration of the Contract insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the performance of the Work
hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor
shall also require all of its subcontractors to procure and maintain the same insurance for the
duration of the Contract. Such insurance shall meet at least the following minimum levels of
coverage:
3.13.2.1 Minimum Scope of Insurance. Coverage shall be at least
as broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 00 01) OR Insurance Services
Office Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage
for operations of designated contractor); (2) Automobile Liability: Insurance Services Office
Business Auto Coverage form number CA 00 01, code 1 (any auto); and (3) Workers’
Compensation and Employer’s Liability:Peha[hit <ecf[diWj_ed _dikhWdY[ Wi h[gk_h[Z Xo j^[
State of California and >cfbeo[hti E_WX_b_jo BdikhWdY[, Policies shall not contain exclusions
contrary to this Contract.
3.13.2.2 Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $2,000,000 per occurrence and $4,000,000 aggregate
for bodily injury, personal injury and property damage; (2) Automobile Liability: $1,000,000 per
accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s
Liability:Peha[hit Yecf[diWj_ed b_c_ji Wi h[gk_h[Z Xo j^[ EWXeh <eZ[ e\ j^[ LjWj[ e\ <Wb_\ehd_W,
>cfbeo[hti E_WX_b_jo b_c_ji e\$1,000,000 each accident, policy limit bodily injury or disease, and
each employee bodily injury or disease. Defense costs shall be available in addition to the
limits. Notwithstanding the minimum limits specified herein, any available coverage shall be
provided to the parties required to be named as additional insureds pursuant to this Contract.
3.13.3 Insurance Endorsements. The insurance policies shall contain the
following provisions, or Contractor shall provide endorsements (amendments) on forms supplied
or approved by the City to add the following provisions to the insurance policies:
3.13.3.1 General Liability. (1) Such policy shall give the City, its
officials, employees, agents and authorized volunteers additional insured status using ISO
endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact same
coverage, with respect to the Work or operations performed by or on behalf of Contractor,
including materials, parts or equipment furnished in connection with such work; (2) all policies
shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained
by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to
any person named as an additional insured pursuant to this Contract, and Contractor agrees to
waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance
as respects the City, its officials, employees, agents and authorized volunteers, or if excess,
i^Wbb ijWdZ _d Wd kdXhea[d Y^W_d e\ Yel[hW][ [nY[ii e\ <edjhWYjehti iY^[Zkb[Z kdZ[hbo_d]
coverage. Any insurance or self-insurance maintained by the City, its officials, employees,
agents and authorized volunteers i^Wbb X[ [nY[ii e\ <edjhWYjehti _nsurance and shall not be
called upon to contribute with it.
3.13.3.2 Automobile Liability. (1) Such policy shall give the City, its
officials, employees, agents and authorized volunteers additional insured status with respect to
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the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall
waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the
Contractor or any insurer by virtue of payment of any loss or any coverage provided to any
person named as an additional insured pursuant to this Contract, and Contractor agrees to
waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance
as respects the City, its officials, employees, agents and authorized volunteers, or if excess,
i^Wbb ijWdZ _d Wd kdXhea[d Y^W_d e\ Yel[hW][ [nY[ii e\ <edjhWYjehti iY^[Zkb[Z kdZ[hbo_d]
coverage. Any insurance or self-insurance maintained by the City, its officials, employees,
agents and authorized volunteers i^Wbb X[ [nY[ii e\ <edjhWYjehti _dikhWdY[ WdZ i^Wbb dej X[
called upon to contribute with it in any way.
3.13.3.3 Peha[hit <ecf[diWj_ed WdZ >cfbeo[hti E_WX_b_jo
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its officials,
employees, agents and authorized volunteers for losses paid under the terms of the insurance
policy which arise from work performed by Contractor.
3.13.3.4 All Coverages. Each insurance policy required by this
Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City; and (2) any failure to comply with reporting or other
provisions of the policies, including breaches of warranties, shall not affect coverage provided to
the City, its officials, employees, agents and authorized volunteers.
3.13.4 Separation of Insureds; No Special Limitations. All insurance
required by this Section shall contain standard separation of insureds provisions. In addition,
such insurance shall not contain any special limitations on the scope of protection afforded to
the City, its officials, employees, agents and authorized volunteers.
3.13.5 Deductibles and Self-Insurance Retentions. Any deductibles or
self-insured retentions must be declared to and approved by the City. Contractor shall
guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officials, employees, agents and
authorized volunteers; or (2) the Contractor shall procure a bond or other financial guarantee
acceptable to the City guaranteeing payment of losses and related investigation costs, claims
and administrative and defense expenses.
3.13.6 Acceptability of Insurers. Insurance is to be placed with insurers
m_j^ W Ykhh[dj :,F, ;[ijti hWj_d] de b[ii j^Wd :8OBB* b_Y[di[Z je Ze Xki_d[ii _d <Wb_\ehd_W* WdZ
satisfactory to the City. Exception may be made for the State Compensation Insurance Fund
when not specifically rated.
3.13.7 Verification of Coverage. Contractor shall furnish City with original
certificates of insurance and endorsements effecting coverage required by this Contract on
forms satisfactory to the City. The certificates and endorsements for each insurance policy shall
be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on
forms supplied or approved by the City. All certificates and endorsements must be received and
approved by the City before work commences. The City reserves the right to require complete,
certified copies of all required insurance policies, at any time.
3.13.8 Subcontractors. All subcontractors shall meet the requirements of
this Section before commencing Work. Contractor shall furnish separate certificates and
61147.02100\14019172.3
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endorsements for each subcontractor. Subcontractor policies of General Liability insurance
shall name the City, its officials, employees, agents and authorized volunteers as additional
insureds using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All
coverages for subcontractors shall be subject to all of the requirements stated herein except as
otherwise agreed to by the City in writing.
3.13.9 Reporting of Claims. Contractor shall report to the City, in addition
je <edjhWYjehti _dikh[h* Wdo WdZ Wbb _dikhWdY[ YbW_ci ikXc_jj[Z Xo <edjhWYjeh _d Yedd[Yj_ed m_j^
the Work under this Contract.
3.14 Bond Requirements.
3.14.1 Payment Bond. If required by law or otherwise specifically requested by
City _d >n^_X_j rCs WjjWY^[Z ^[h[je WdZ _dYehfehWj[Z ^[h[_d Xo h[\[h[dY[* <edjhWYjeh i^Wbb
execute and provide to City concurrently with this Contract a Payment Bond in an amount
required by the City and in a form provided or approved by the City. If such bond is required, no
payment will be made to Contractor until the bond has been received and approved by the City.
3.14.2 Performance Bond. If specifically requested by City _d >n^_X_j rCs
attached hereto and incorporated herein by reference, Contractor shall execute and provide to
City concurrently with this Contract a Performance Bond in an amount required by the City and
in a form provided or approved by the City. If such bond is required, no payment will be made
to Contractor until the bond has been received and approved by the City.
3.14.3 Bond Provisions. Should, in Cityti ieb[ ef_d_ed* Wdo XedZ X[Yec[
insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the
effected bond within (ten) 10 days of receiving notice from City. In the event the surety or
Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to the City, and Contractor shall post acceptable replacement bonds at
least ten (10) days prior to expiration of the original bonds. No further payments shall be
deemed due or will be made under this Contract until any replacement bonds required by this
Section are accepted by the City. To the extent, if any, that the Total Contract Price is increased
in accordance with the Contract, Contractor shall, upon request of the City, cause the amount of
the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such
increase to the City. If Contractor fails to furnish any required bond, the City may terminate the
Contract for cause.
3.14.4 Surety Qualifications. Only bonds executed by an admitted surety
insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If
a California-admitted surety insurer issuing bonds does not meet these requirements, the
insurer will be considered qualified if it is in conformance with Section 995.660 of the California
Code of Civil Procedure, and proof of such is provided to the City.
3.15 Warranty. Contractor warrants all Work under the Contract (which for purposes
of this Section shall be deemed to include unauthorized work which has not been removed and
any non-conforming materials incorporated into the Work) to be of good quality and free from
any defective or faulty material and workmanship. Contractor agrees that for a period of one
year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty
provided by any manufacturer or supplier of equipment or materials incorporated into the Work,
whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after
being notified in writing by the City of any defect in the Work or non-conformance of the Work to
the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms
61147.02100\14019172.3
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of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the
City in response to an emergency. In addition, Contractor shall, at its sole cost and expense,
repair and replace any portions of the Work (or work of other contractors) damaged by its
defective Work or which becomes damaged in the course of repairing or replacing defective
Peha, ?eh Wdo Peha ie Yehh[Yj[Z* <edjhWYjehti eXb_]Wj_ed ^[h[kdZ[h je Yehh[Yj Z[\[Yj_l[ Peha
shall be reinstated for an additional one-year period, commencing with the date of acceptance
of such corrected Work. Contractor shall perform such tests as the City may require to verify
that any corrective actions, including, without limitation, redesign, repairs, and replacements
comply with the requirements of the Contract. All costs associated with such corrective actions
and testing, including the removal, replacement, and reinstitution of equipment and materials
necessary to gain access, shall be the sole responsibility of Contractor. All warranties and
guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the
Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of
the City, regardless of whether or not such warranties and guarantees have been transferred or
assigned to the City by separate agreement and Contractor agrees to enforce such warranties
and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform
its obligations under this Section, or under any other warranty or guaranty under this Contract,
to the reasonable satisfaction of the City, the City shall have the right to correct and replace any
defective or non-conforming Work and any work damaged by such work or the replacement or
correction thereof at Contracjehti ieb[ [nf[di[, <edjhWYjeh i^Wbb X[ eXb_]Wj[Z je \kbbo h[_cXkhi[
the City for any expenses incurred hereunder upon demand.
3.16 Employee/Labor Certifications.
3.16.1 <edjhWYjehti EWXeh <[hj_\_YWj_ed. By its signature hereunder, Contractor
certifies that he is aware of the provisions of Section 3700 of the California Labor Code which
h[gk_h[ [l[ho [cfbeo[h je X[ _dikh[Z W]W_dij b_WX_b_jo \eh Peha[hti <ecf[diWj_ed eh je kdZ[hjWa[
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Work. A certification form for this
fkhfei[* m^_Y^ _i WjjWY^[Z je j^_i <edjhWYj Wi >n^_X_j rDs WdZ _dYehfehWj[Z ^[h[_d Xo h[\[h[dY[*
shall be executed simultaneously with this Contract.
3.16.2 Equal Opportunity Employment. Contractor represents that it is an equal
opportunity employer and that it shall not discriminate against any employee or applicant for
employment because of race, religion, color, national origin, ancestry, sex, age or other
interests protected by the State or Federal Constitutions. Such non-discrimination shall include,
but not be limited to, all activities related to initial employment, upgrading, demotion, transfer,
recruitment or recruitment advertising, layoff or termination.
3.16.3 Verification of Employment Eligibility. By executing this Contract,
Contractor verifies that it fully complies with all requirements and restrictions of state and federal
law respecting the employment of undocumented aliens, including, but not limited to, the
Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall
require all subcontractors and sub-subcontractors to comply with the same.
3.17 General Provisions.
3.17.1 Cityti K[fh[i[djWj_l[. The City hereby designates the General Manager,
eh ^_i eh ^[h Z[i_]d[[* je WYj Wi _ji h[fh[i[djWj_l[ \eh j^[ f[h\ehcWdY[ e\ j^_i <edjhWYj (rCityti
K[fh[i[djWj_l[s),Cityti K[fh[i[djWj_l[ i^Wbb ^Wl[ j^[ fem[h je WYj ed X[^Wb\ e\ j^[City for all
purposes under this Contract. Contractor shall not accept direction or orders from any person
other than the Cityti K[fh[i[djWj_l[ eh ^_i eh ^[h designee.
61147.02100\14019172.3
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3.17.2 <edjhWYjehti K[fh[i[djWj_l[. Before starting the Work, Contractor shall
submit in writing the name, qualifications and experience of its proposed representative who
shall be subject to the review and approval of the City (r{<edjhWYjehti K[fh[i[djWj_l[s),
Following approval by the City* <edjhWYjehti K[fh[i[djWj_l[ i^Wbb ^Wl[ \kbb authority to represent
WdZ WYj ed X[^Wb\ e\ <edjhWYjeh \eh Wbb fkhfei[i kdZ[h j^_i <edjhWYj, <edjhWYjehti
Representative shall supervise and direct the Work, using his best skill and attention, and shall
be responsible for all construction means, methods, techniques, sequences and procedures and
\eh j^[ iWj_i\WYjeho YeehZ_dWj_ed e\ Wbb fehj_edi e\ j^[ Peha kdZ[h j^_i <edjhWYj, <edjhWYjehti
Representative shall devote full time to the Project and either he or his designee, who shall be
acceptable to the City, shall be present at the Work site at all times that any Work is in progress
and at any time that any employee or subcontractor of Contractor is present at the Work site.
Arrangements for responsible supervision, acceptable to the City, shall be made for emergency
Peha m^_Y^ cWo X[ h[gk_h[Z, L^ekbZ <edjhWYjeh Z[i_h[ je Y^Wd][ _ji <edjhWYjehti
Representative, Contractor shall provide the information specified above and obtain the Cityti
written approval.
3.17.3 Termination. This Contract may be terminated by City at any time, either
with our without cause, by giving Contractor three (3) days advance written notice. In the event
of termination by City for any reason other than the fault of Contractor, City shall pay Contractor
for all Work performed up to that time as provided herein. In the event of breach of the Contract
by Contractor, City may terminate the Contract immediately without notice, may reduce payment
to Contractor in the amount necessary to offset Cityti h[ikbj_d] ZWcW][i* WdZ cWo fkhik[ Wdo
other available recourse against Contractor. Contractor may not terminate this Contract except
for cause. In the event this Contract is terminated in whole or in part as provided, City may
procure, upon such terms and in such manner as it may determine appropriate, services similar
to those terminated. Further, if this Contract is terminated as provided, City may require
Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials
or other matter prepared or built by Contractor in connection with its performance of this
Contract.
3.17.4 Contract Interpretation. Should any question arise regarding the meaning
or import of any of the provisions of this Contract or written or oral instructions from City, the
matter shall be referred to Cityti K[fh[i[djWj_l[* m^ei[ Z[Y_i_ed i^Wbb X[ X_dZ_d] kfed
Contractor.
3.17.5 Anti-Trust Claims. This provision shall be operative if this Contract is
applicable to California Public Contract Code Section 7103.5. In entering into this Contract to
supply goods, services or materials, Contractor hereby offers and agrees to assign to the City
all rights, title, and interest in and to all causes of action it may have under Section 4 of the
Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with
Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from
purchases of goods, services, or materials pursuant to the Contract. This assignment shall be
made and become effective at the time the City tender final payment to Contractor, without
further acknowledgment by the Parties.
3.17.6 Notices. All notices hereunder and communications regarding
interpretation of the terms of the Contract or changes thereto shall be provided by the mailing
thereof by registered or certified mail, return receipt requested, postage prepaid and addressed
as follows:
CONTRACTOR:
61147.02100\14019172.3
Updated March 2019 20
Sancon Technologies, Inc.
5841 Engineer Drive
Huntington Beach, CA 92649
Attn: Mark Weber, Project Manager
CITY:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Eric Bauman, Assistant Utilities Director
Any notice so given shall be considered received by the other Party three (3) days after deposit
in the U.S. Mail as stated above and addressed to the Party at the above address. Actual
notice shall be deemed adequate notice on the date actual notice occurred, regardless of the
method of service.
3.17.7 Time of Essence. Time is of the essence in the performance of this
Contract.
3.17.8 Assignment Forbidden. Contractor shall not, either voluntarily or by
action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by
Contractor herein without the prior written consent of City. If Contractor attempts an assignment
or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option,
terminate and revoke the Contract and shall thereupon be relieved from any and all obligations
to Contractor or its assignee or transferee.
3.17.9 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.17.10 EWmi* O[dk[* WdZ :jjehd[oit ?[[i. This Agreement shall be
interpreted in accordance with the laws of the State of California. If any action is brought to
interpret or enforce any term of this Agreement, the action shall be brought in a state or federal
court situated in the County of Orange, State of California.
3.17.11 Counterparts. This Contract may be executed in counterparts,
each of which shall constitute an original.
3.17.12 Successors. The Parties do for themselves, their heirs, executors,
administrators, successors, and assigns agree to the full performance of all of the provisions
contained in this Contract.
3.17.13 [Reserved]
3.17.14 Solicitation. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid
nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Contract. For
breach or violation of this warranty, City shall have the right to terminate this Contract without
liability.
61147.02100\14019172.3
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3.17.15 Conflict of Interest. Contractor maintains and warrants that it has
not employed nor retained any company or person, other than a bona fide employee working
solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it
has not paid nor has it agreed to pay any company or person, other than a bona fide employee
working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement. For
breach or violation of this warranty, City shall have the right to rescind this Agreement without
liability. For the term of this Contract, no official, officer or employee of City, during the term of
his or her service with City, shall have any direct interest in this Contract, or obtain any present
or anticipated material benefit arising therefrom. In addition, Contractor agrees to file, or to
cause its employees or subcontractors to file, a Statement of Economic Interest with the Cityti
Filing Officer as required under state law in the performance of the Work.
3.17.16 Certification of License.
3.17.16.1 Contractor certifies that as of the date of execution of this
<edjhWYj* <edjhWYjeh ^Wi W Ykhh[dj YedjhWYjehti b_Y[di[ e\ j^[classification indicated below
kdZ[h <edjhWYjehti i_]dWjkh[,
3.17.16.2 Contractors are required by law to be licensed and
h[]kbWj[Z Xo j^[ <edjhWYjehit LjWj[ E_Y[di[ ;eWhZ m^_Y^ ^Wi ‘kh_iZ_Yj_ed je _dl[ij_]Wj[
complaints against contractors if a complaint regarding a patent act or omission is filed within
four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission
pertaining to structural defects must be filed within ten (10) years of the date of the alleged
l_ebWj_ed, :do gk[ij_edi YedY[hd_d] W YedjhWYjeh cWo X[ h[\[hh[Z je j^[ K[]_ijhWh* <edjhWYjehit
State License Board, P.O. Box 26000, Sacramento, California 95826.
3.17.17 Authority to Enter Contract. Each Party warrants that the
individuals who have signed this Contract have the legal power, right and authority to make this
Contract and bind each respective Party.
3.17.18 Entire Contract; Modification. This Contract contains the entire
agreement of the Parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Contract may only be modified by a writing
signed by both Parties.
3.17.19 Non-Waiver. None of the provisions of this Agreement shall be
considered waived by either party, unless such waiver is specifically specified in writing.
3.17.20 Cityti K_]^j je >cfbeo Hj^[h <edjhWYjehi. City reserves right to
employ other contractors in connection with this Project or other projects.
[SIGNATURES ON NEXT PAGE]
61147.02100\14019172.3
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EXHIBIT “A”
SERVICES / SCHEDULE
SANCON TECHNOLOGIES, INC._ _ ___
GENERAL ENGINEERING CONTRACTOR Tel: (714) 891-2323
STATE CONTRACTORS LICENSE #774055 Fax: (714) 891-2524
DIR REGISTRATION # 1000008879
5841 Engineer Drive
Huntington Beach, CA 92649
BID # BT20246
Date: July 16, 2020
To: City of San Juan Capistrano
Attention: Michael Marquis, P.E.
Phone: (949) 443-6326 Email: mmarquis@sanjuancapistrano.org
Project: Summer Walk Wet Well Rehabilitation
Scope of work: Based on information furnished to Sancon, please find below our proposal to rehabilitate (1)
existing wet well 12’ in diameter and 25’ deep.
This bid includes the following:
Confined Space Entry Procedures & Equipment
Prevailing wage / certified payroll if required, In-Place insurance coverage
Scaffolding for our work
Removal of existing coating
Surface preparation via water blasting, Mortar Repair as required
Application of 3-5 mil Epoxy Primer, Top Coat of 125 mils of Sancon 100 Polyurethane
High voltage spark test while on-site, at the completion of our work
Includes 1-year product and application warranty from the date of acceptance
Assumptions:
Water meter or on-site water is provided
City to provide secure storage yard for Sancon equipment during lining and coating work
City to provide initial wet well dewatering and cleaning prior to Sancon’s arrival
City to provide Vactor support for removal and disposal of spent blast media
Regular working hours M – F 7AM to 5PM
No other crafts will interfere with our work
Floor coating is not recommended, nor is it included in this scope of work
Proposal is subject to mutually acceptable contract language and must be incorporated in any
subsequent contract/purchase order
This bid excludes the following:
Initial wet well cleaning, dewatering, bypass, removal and placement of mechanical equipment
3rd party testing or testing other than spark testing
Stoppage of water infiltration
BMP’s, NPDES Permits, SWWP’s, Survey & Staking
Price: $54,239.00 Lump Sum
$4,000.00* Saturday Adder (if necessary due to delay outside of Sancon’s control)
STAND BY RATE / ADDITIONAL WORK NOT LISTED ABOVE @ $300.00 /MAN HR.PRICE IS BASED ON ONE MOBILIZATION.ADDITIONAL
MOBILIZATIONS BILLED AT:$6,950.00 EACH.SANCON SHALL NOT BE RESPONSIBLE FOR LIQUIDATED DAMAGES OR PENALTY DUE TO DELAY BY
OTHERS.BOND, IF REQUIRED, WOULD ADD 1% TO TOTAL BID PRICE.PRICE IS BASED ON RETENTION BEING WITHHELD A MAXIMUM OF 90 DAYS
AFTER COMPLETION OF OUR WORK.PRICE IS FIRM FOR A PERIOD OF THIRTY DAYS FROM RECEIPT.PAYMENT TERMS NET 30 DAYS OR PER
CONTRACT.
Respectfully Submitted, Accepted By:___________________
Date: ________________
Mark Weber, PMP
Sancon Technologies, INC. PO:_______________
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61147.02100\14019172.3
EXHIBIT “B”
PLANS AND SPECIFICATIONS
N/A –SEE EXHIBIT “A” FOR SCOPE OF SERVICES
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61147.02100\14019172.3
EXHIBIT “C”
SPECIAL CONDITIONS
ARTICLE 1. BONDS
Within ten (10) calendar days from the date the Contractor is notified of award of the Contract,
the Contractor shall deliver to the City four identical counterparts of the Performance Bond and
Payment Bond on the forms supplied by the City and included Wi >n^_X_j r?s je j^[ <edjhWYj.
Failure to do so may, in the sole discretion of City, result in the forfeiture o\ <edjhWYjehti X_Z
security. The surety supplying the bond must be an admitted surety insurer, as defined in Code
of Civil Procedure Section 995.120, authorized to do business as such in the State of California
and satisfactory to the City. The Performance Bond and the Payment Bond shall be for one
hundred percent (100%) of the Total Contract Price.
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61147.02100\14019172.3
EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
- 29 -
61147.02100\14019172.3
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of San Juan Capistrano (^[h[_dW\j[h h[\[hh[Z je Wi rCitys) ^Wi
WmWhZ[Z je VVVVVVVVVVVVVVVVVVVV* (^[h[_dW\j[h h[\[hh[Z je Wi j^[ r<edjhWYjehs)
_______________________ an agreement for ______________________________
(^[h[_dW\j[h h[\[hh[Z je Wi j^[ rIhe‘[Yjs),
WHEREAS, the work to be performed by the Contractor is more particularly set forth in
the Contract Documents for the Project dated ________________, (hereinafter referred to as
r<edjhWYj =eYkc[djis)* j^[ j[hci WdZ YedZ_j_edi e\ m^_Y^ Wh[ [nfh[iibo _dYehfehWj[Z ^[h[_d Xo
reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms
thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and
_____________________________________________ as Surety, a corporation organized and
duly authorized to transact business under the laws of the State of California, are held and firmly
bound unto the City in the sum of ___________________________ DOLLARS,
($____________), said sum being not less than one hundred percent (100%) of the total
amount of the Contract, for which amount well and truly to be made, we bind ourselves, our
heirs, executors and administrators, successors and assigns, jointly and severally, firmly by
these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its
heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by,
and well and truly keep and perform the covenants, conditions and agreements in the Contract
Documents and any alteration thereof made as therein provided, on its part, to be kept and
performed at the time and in the manner therein specified, and in all respects according to their
intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of
all materials and workmanship; and shall indemnify and save harmless the City, its officers and
agents, as stipulated in said Contract Documents, then this obligation shall become null and
void; otherwise it shall be and remain in full force and effect.
As a condition precedent to the satisfactory completion of the Contract Documents,
unless otherwise provided for in the Contract Documents, the above obligation shall hold good
for a period of one (1) year after the acceptance of the work by City, during which time if
Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally
protect the City from loss or damage resulting from or caused by defective materials or faulty
workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of
Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein
shall limit the Cityti h_]^ji eh j^[ <edjhWYjeh eh Lkh[joti eXb_]Wj_edi kdZ[h j^[ <edjhWYj* bWm eh
equity, including, but not limited to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by the City to be, in default under the
Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents,
or shall promptly, at the Cityti efj_ed8
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61147.02100\14019172.3
(1) Take over and complete the Project in accordance with all terms and conditions
in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and
conditions in the Contract Documents and upon determination by Surety of the
lowest responsive and responsible bidder, arrange for a Contract between such
bidder, the Surety and the City, and make available as work progresses sufficient
funds to pay the cost of completion of the Project, less the balance of the
contract price, including other costs and damages for which Surety may be liable.
T^[ j[hc rXWbWdY[ e\ j^[ YedjhWYj fh_Y[s Wi ki[Z _d j^_i fWhW]hWf^ i^Wbb c[Wd j^[
total amount payable to Contractor by the City under the Contract and any
modification thereto, less any amount previously paid by the City to the
Contractor and any other set offs pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local,
California and federal law and make available as work progresses sufficient
funds to pay the cost of completion of the Project, less the balance of the
contract price, including other costs and damages for which Surety may be liable.
M^[ j[hc rXWbWdY[ e\ j^[ YedjhWYj fh_Y[s Wi ki[Z _d j^_i fWhW]hWf^ i^Wbb c[Wd j^[
total amount payable to Contractor by the City under the Contract and any
modification thereto, less any amount previously paid by the City to the
Contractor and any other set offs pursuant to the Contract Documents.
Surety expressly agrees that the City may reject any contractor or subcontractor which
may be proposed by Surety in fulfillment of its obligations in the event of default by the
Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid
from Contractor for completion of the Project if the City, when declaring the Contractor in
default, notifies Surety of the Cityti eX‘[Yj_ed je <edjhWYjehti \khj^[h fWhj_Y_fWj_ed _d j^[
completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension
of time, alteration or addition to the terms of the Contract Documents or to the Project to be
performed thereunder shall in any way affect its obligations on this bond, and it does hereby
waive notice of any such change, extension of time, alteration or addition to the terms of the
Contract Documents or to the Project, including but not limited to the provisions of sections
2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of
______________, 20__).
(Corporate Seal)
Contractor/ Principal
By
Title
- 31 -
61147.02100\14019172.3
(Corporate Seal) Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium
charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________
___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________
Representative for service of
process in California, if different ___________________________________________
from above)
___________________________________________
(Telephone number of Surety and ___________________________________________
Agent or Representative for service
of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety
to do so must be attached hereto.
- 32 -
61147.02100\14019172.3
Notary Acknowledgment
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.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
&Individual
&Corporate Officer
Title(s)Title or Type of Document
&Partner(s)&Limited
&General Number of Pages
&Attorney-In-Fact
&Trustee(s)
&Guardian/Conservator Date of Document
&Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
- 33 -
61147.02100\14019172.3
PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of San Juan Capistrano (^[h[_dW\j[h Z[i_]dWj[Z Wi j^[ rCitys)* Xo
action taken or a resolution passed ___________ , 20____has awarded to ________________
^[h[_dW\j[h Z[i_]dWj[Z Wi j^[ rIh_dY_fWb*s W YedjhWYj \eh j^[ meha Z[iYh_X[Z Wi \ebbemi8
VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV (j^[ rIhe‘[Yjs)9 WdZ
WHEREAS, the work to be performed by the Principal is more particularly set forth in the
Contract Documents for the Project dated __________________ (r<edjhWYj =eYkc[djis)* j^[
terms and conditions of which are expressly incorporated by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract;
providing that if said Principal or any of its Subcontractors shall fail to pay for any materials,
provisions, provender, equipment, or other supplies used in, upon, for or about the performance
of the work contracted to be done, or for any work or labor done thereon of any kind, or for
amounts due under the Unemployment Insurance Code or for any amounts required to be
deducted, withheld, and paid over to the Employment Development Department from the wages
of employees of said Principal and its Subcontractors with respect to such work or labor the
Surety on this bond will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety,
are held and firmly bound unto the City in the penal sum of ______________
Dollars ($___________) lawful money of the United States of America,
for the payment of which sum well and truly to be made, we bind ourselves, our heirs,
executors, administrators, successors and assigns, jointly and severally, firmly by these
presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its
subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of
the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or
other supplies, used in, upon, for or about the performance of the work contracted to be done,
or for any work or labor thereon of any kind, or amounts due under the Unemployment
Insurance Code with respect to work or labor performed under the contract, or for any amounts
required to be deducted, withheld, and paid over to the Employment Development Department
or Franchise Tax Board from the wages of employees of the contractor and his subcontractors
pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and
labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein
above specified.
This bond shall inure to the benefit of any of the persons named in Section 9100 of the
Civil Code so as to give a right of action to such persons or their assigns in any suit brought
upon this bond.
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or
released from the obligation of this bond by any change, extension of time for performance,
addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement
pertaining or relating to any scheme or work of improvement herein above described, or
pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any
change or modification of any terms of payment or extension of the time for any payment
pertaining or relating to any scheme or work of improvement herein above described, nor by any
- 34 -
61147.02100\14019172.3
rescission or attempted rescission of the contract, agreement or bond, nor by any conditions
precedent or subsequent in the bond attempting to limit the right of recovery of claimants
otherwise entitled to recover under any such contract or agreement or under the bond, nor by
any fraud practiced by any person other than the claimant seeking to recover on the bond and
that this bond be construed most strongly against the Surety and in favor of all persons for
whose benefit such bond is given, and under no circumstances shall Surety be released from
liability to those for whose benefit such bond has been given, by reason of any breach of
contract between the owner or City and original contractor or on the part of any obligee named
in such bond, but the sole conditions of recovery shall be that claimant is a person described in
Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that
Surety does hereby waive notice of any such change, extension of time, addition, alteration or
modification herein mentioned and the provisions of sections 2819 and 2845 of the California
Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day
of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of
the Surety to do so must be attached hereto.
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety
to do so must be attached hereto.
- 35 -
61147.02100\14019172.3
Notary Acknowledgment
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.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
&Individual
&Corporate Officer
Title(s)Title or Type of Document
&Partner(s)&Limited
&General Number of Pages
&Attorney-In-Fact
&Trustee(s)
&Guardian/Conservator Date of Document
&Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above