22-0906_NATIONAL CONSTRUCTION AND REMEDIATION, INC._Construction ContractCITY OF SAN JUAN CAPISTRANO
CONSTRUCTION CONTRACT
FORMER UTILITY BUILDING DEPARTMENT DEMOLITION
1. PARTIES AND DATE.
This Contract is made and entered into this 6'h day of September 2022 by and between
the City of San Juan Capistrano, a public agency of the State of California ("City") and National
Construction and Remediation, Inc., a CORPORATION, with its principal place of business at 628
East Edna Place Covina, CA 91723 ("Contractor'). City and Contractor are sometimes
individually referred to as "Party" and collectively as "Parties" in this Contract.
2. RECITALS.
2.1 Com. 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
Demolition of the former Utility Department Building 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:
2.3 Pralect. City desires to engage Contractor to render such services for the
Demolition of Former Utility Building Department ("Project") as set forth in this Contract.
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:
• Services/Schedule (Exhibit "A")
■ Plans and Specifications (Exhibit "B")
• Special Conditions (Exhibit "C")
• Contractor's Certificate Regarding Workers' Compensation (Exhibit "D")
■ Public Works Contractor Registration Certification (Exhibit "E")
• Change Orders executed by the City
• 2021 Edition of the Standard Specifications for Public Works Construction
(The Greenbook), Excluding Sections 1-9
• Notice Inviting Bids, if any
■ Instructions to Bidders, if any
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Contractor's Bid
3.2 Contractor's Basic Obligation; 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 Contract
(hereinafter sometimes referred to as the "Work"), for a Total Contract Price as 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 "B" attached
hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work
are described in Exhibit "C" attached hereto and incorporated herein by this 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 Substitutions/"Or Equal". 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
followed by the words "or equal."
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, for substitution of any "or equal" material, process or article no 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 after award of
Contract. Provisions regarding submission of "or equal" requests shall not in any way authorize
an extension of time for performance of this Contract. If a proposed "or equal" 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 article is an "or equal" material, process or article that may be substituted. Data required to
substantiate requests for substitutions of an "or equal" material, process or article data shall
include a signed affidavit from Contractor stating that, and describing how, the substituted "or
equal" material, process or article is equivalent to that specified in every way except as listed on
the affidavit. Substantiating data shall include any and all illustrations, specifications, and other
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relevant data including catalog information which describes the requested substituted "or equal"
material, process or article, and substantiates that it is an "or equal" to the material, process or
article. The substantiating data must also include information regarding the durability and lifecycle
cost of the requested substituted "or equal" material, process or article. Failure to 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 City's costs associated with the review of
substitution requests. Contractor shall be responsible for all costs related to a substituted "or
equal" material, process or article. Contractor is directed 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 21 calendar days, beginning the effective date of
the Notice to Proceed ("Contract Time"). Contractor shall perform its Work in strict accordance
with any completion schedule, construction schedule or project milestones developed by the City.
Such schedules or milestones may be included as part of Exhibits "A" or "B" attached 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 Two Hundred Fifty dollars ($250) 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 caused by Contractor's failure to comply with
the standard of care provided for herein. Any 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
at all times be under Contractor's exclusive direction and control. Contractor shall pay all 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 obligations
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respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, and workers' compensation insurance.
3.6 City's Basic Obligation. 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 of Fifty nine Thousand
Seven Hundred Fifty Nine Dollars ($59,759 ("Total Contract Price") provided that such amount
shall be 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 performing any of Contractor's obligations under the Contract 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 date; (6)
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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 City's right to such 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 Section and Section
22300 of the Public Contract Code, the term "satisfactory completion of the contract" shall mean
the time the 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 Wa_qes. 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,
Title 8, Section 16000 et seq., ("Prevailing Wage Laws"), which require the payment of prevailing
wage rates and the performance of other requirements on "public works" and "maintenance"
projects. Since the Services are being performed as part of an applicable "public works" or
"maintenance" project, as defined by the Prevailing Wage Laws, and 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 Contractor's
principal place of business and at the project site. Contractor shall defend, indemnify and hold
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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 constitutes
a legal day's work. Pursuant to Section 1813 of the California Labor Code, 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 without
proof of the contractor's and subcontractors' current registration with the Department of Industrial
Relations to perform public work. Contractor is directed to review, fill out and execute the Public
Works Contractor Registration Certification attached hereto as Exhibit "E" prior to contract
execution. Notwithstanding the foregoing, the contractor registration requirements mandated by
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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 Contractor's
sole responsibility to evaluate and pay the cost of complying with all labor 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 Contractor's
performance of Work, including any delay, shall be Contractor's sole responsibility. 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
("Permit"). It shall be Contractor's sole responsibility to file a Notice of Intent and procure 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
required by the Permit. The Permit requires the SWPPP to be a "living document" that changes
as necessary to meet the conditions and requirements of the job site as it progresses through
difference phases of construction and is subject to different weather conditions. It shall be
Contractor's sole responsibility to update the SWPPP as necessary to 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
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watercourses under their jurisdiction, including applicable requirements in municipal storm water
management programs.
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 the
Contract, if such delay is caused by or related to Contractor's failure to comply with the Permit.
3.8.1.6 Reservation of Right to Defend. City reserves the right to
defend any enforcement action brought against the City for Contractor's failure to comply with 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 City's attorney's fees) associated with, any
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.
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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 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 City's business license fee, 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 City's review and 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
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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 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, "Claim" means a separate demand
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. A "Claim" does not include any 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, and Contractor's
request for a change has been denied in whole or in part. Claims governed by this Section must
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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 in 16 point capital font: "THIS IS A CLAIM."
Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing
in this Section is intended to extend the time limit 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 If Contractor's 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
of seq.
3.10.4 City's response. 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.
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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 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 City's written response to the claim, as further 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 City's written response, or City
fails to respond within the time prescribed, the Contractor may so notify City, in writing, either
within 15 days of receipt of City's response or within 15 days of City's failure to respond 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.
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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.
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
chapter, also pay the attorney's fees on appeal of the other party.
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
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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. City's failure to respond to a claim from the 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. City's failure to respond
shall not waive City's rights to any subsequent procedures for the resolution 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
death, (collectively, "Claims") in any manner arising out of, pertaining to, or incident to any 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 Contractor's
services, the Project or this Agreement, including without limitation the payment of all
consequential damages, expert witness fees and attorneys' fees and other related costs and
expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782,
Contractor's indemnity obligation shall 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 City's agents, servants, or independent
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 City's choosing and at Contractor's own cost, expense and risk, 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.
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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 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: Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance. 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. $2,000,000 per
accident for bodily injury and property damage; (3) Pollution Liability: $1,000,000; and (4)
Workers' Compensation and Employer's Liability: Workers' compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of $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
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respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of Contractor's scheduled underlying coverage.
Any insurance or self-insurance maintained by the City, its officials, employees, agents and
authorized volunteers shall be excess of Contractor's insurance 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
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, shall stand in an
unbroken chain of coverage excess of Contractor's scheduled underlying coverage. Any
insurance or self-insurance maintained by the City, its officials, employees, agents and authorized
volunteers shall be excess of Contractor's insurance and shall not be called upon to contribute
with it in any way.
3.13.3.3 Workers' Compensation and Employer's Liability 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
with a current A.M. Best's rating no less than A:VII, licensed to do business in California, and
satisfactory to the City. Exception may be made for the State Compensation Insurance Fund
when not specifically rated.
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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
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
to Contractor's insurer, any and all insurance claims submitted by Contractor in connection with
the Work under this Contract.
3.14 Bond Requirements.
3.14.1 Payment Bond. If required by law or otherwise specifically requested by
City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor shall 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 in Exhibit "C" 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 City's sole opinion, any bond become
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
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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 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 Work. For any Work so
corrected, Contractor's obligation hereunder to correct defective Work 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 Contractor's sole expense.
Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon
demand.
3.16 Employee/Labor Certifications.
3.16.1 Contractor's Labor Certification. By its signature hereunder, Contractor
certifies that he is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Worker's Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Work. A certification form for this purpose,
which is attached to this Contract as Exhibit "D" and incorporated herein by reference, 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.
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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 City's Representative. The City hereby designates the General Manager,
or his or her designee, to act as its representative for the performance of this Contract ("City's
Representative"). City's Representative shall have the power to act on behalf of the City for all
purposes under this Contract. Contractor shall not accept direction or orders from any person
other than the City's Representative or his or her designee.
3.17.2 Contractor's Representative. 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 ("'Contractor's Representative"). Following
approval by the City, Contractor's Representative shall have full authority to represent and act on
behalf of Contractor for all purposes under this Contract. Contractor's 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 for the satisfactory
coordination of all portions of the Work under this Contract. Contractor's 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 Work which may
be required. Should Contractor desire to change its Contractor's Representative, Contractor shall
provide the information specified above and obtain the City's 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 City's resulting damages, and may pursue any
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 City's Representative, whose decision shall be binding upon
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
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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:
CITY:
National Construction and Remediation, Inc.
Attn: Robert Ackerman, Project Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Joe Parco, City Engineer
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 taws, Venue, and Attornevs' Fees. 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.
ATTACHMENT 2
PAGE 20 OF 36
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.
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 City's 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
Contract, Contractor has a current contractor's license of the classification indicated below under
Contractor's signature.
3.17.16.2 Contractors are required by law to be licensed and regulated
by the Contractors' State License Board which has jurisdiction to investigate 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 violation. Any questions
concerning a contractor may be referred to the Registrar, Contractors' State License Board, P.O.
Box 26000, Sacramento, California 95826.
3.17.17 Authoritv 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.
ATTACHMENT 2
PAGE 21 OF 36
3.17.19 Nan -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 City's Right to Employ Other Contractors. City reserves right to
employ other contractors in connection with this Project or other projects.
3.17.21 Federal Provisions. N/A
[SIGNATURES ON NEXT PAGE]
ATTACHMENT 2
PAGE 22 OF 36
SIGNATURE PAGE FOR CONSTRUCTION CONTRACT
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND NATIONAL CONSTRUCTION AND REMEDIATION, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the 6t" day
of September 2022.
CITY OF SAN JUAN CAPIST
2i5B_w0min
ty Mangy
0 National Construction ediation, Inc.
By: r
Its. �'/ rc7'�'f
Printed Name: Robert Ackermann
I' •
0
APPROVED AS TO FORM:
75
By:
City Attorney
SDC vT a Ar�+s
w M � •+
1 Lpva :h
ATTACHMENT 2
PAGE 23 OF 36
CALIFORNIA ALL- PURPOSE
CERTIFICATE OF 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-SnssLiL.P
,\OtjS }
On nes Z5_}7�,��_ before me, ,\c:� 6 fir 6('G� •_� �l�c
L era insljn name aM TL[Eeo o loori
personally appeared Z�(- pe r?I v-, y1 -
who proved to me on the basis of satisfactory evidence to be the person,( whose
nameM islax'e subscribed to the within instrument and acknowledged to me that
he/sl 4gMey executed the same in hislhirltWeir authorized capacity(ie4), and that by
hislh�r/oeir signature(o on the instrument the person, or the entity upon behalf of
which the person( 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. No ryPutblic;Calfornia
Los Angelo County
aCommistion 02355245
awy Comm. Expires: Apr 22, 2026
Nbitoo PJ611'iWtUre (Notary Public Seal)
ADDITIONAL OPTIONAL INFORMATIO
DESCRIPTION OF THE ATTACHED DOCUMENT
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages3l_P Document Date
CAPACITY CLAIMED BY THE SIGNER
ElIndividual (s)
ElCorporate Officer
(Title)
Partner(s)
LJ Attorney -in -Fact
❑ Trustee(s)
L] Other
2015 Version v nnrd NotaryClasses corn 800-873-9855
N
INSTRUCTIONS FOR COMPLETING THIS FORM
This form complies ivith current California stalnles regarding notary wording and,
ij'needed. shanld be ronrpleted and attached to the docantenr. Acknasl.ledgments
f •o►u other states ama'v be completed four darrane►ns hetng sent to [liar.Tart. .5v long
as the W'or'ding docs not r•equeve the California nrttar3• to reolate California nvtars,
tall..
• State and County infornation must be the State and County where the document
signer(s) personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s) personally appeared which
must also be the same date the acknowledgment is completed.
• The notary public must print his or her name as it appears within his or her
commission followed by a comma and then your title (notary public).
• Print the name(s) of document signer(s) who personally appear at the time of
notarization.
• Indicate the correct singular or plural forms by crossing off incorrect forms (i.e.
he/shclNiey- is lefe) or circling the correct forms. Failure to correctly indicate this
information may lead to rejection 017dMilment recording.
• The notary seal impression must be clear and photographically reproducible.
hnpression must not cover text or lines. If seal impression smudges, re -seal if a
sufficient area permits, otherwise complete a different acknowledgment form.
• Signature of the notary public must match the signature on file with the office of
the county clerk.
Additional information is not required but could help to ensure this
acknowledgment is not misused or attached to a different document.
Indicate title or type of attached document, number of pages and date.
Indicate the capacity claimed by the signer. if the claimed capacity is a
corporate officer, indicate the title (i.e. CEO, CFO, Secretary).
• Securely attach this document to the signed document with a staple.
EXHIBIT "A"
SERVICES / SCHEDULE
ATTACHMENT 2
PAGE 24 OF 36
EXHIBIT "B"
PLANS AND SPECIFICATIONS
61147 02100\14019172 3
ATTACHMENT 1
PAGE 25 OF 36
Lic. 989559 EXHIBITS A & B
-NCR
National Construction and Remediation, Inc
Hereinafter referred to as NCR REVISED 08/09/22
This Contract proposal includes supplying all labor, material, equipment, AQMD notifications and fees
associated with the following scope of work.
Attn: Paul Meshkin
Location: 32450 Paseo Adelanto, San Juan Capistrano, CA
Scope of Work Inclusions:
➢ File and pay for AQMD notification and associated fees.
➢ Evacuate Freon or coolant from HVAC systems prior to demo.
➢ Demolish & dispose approx 3,200SF Modular buildings including access ramps, steel foundation, and steel
supports.
➢ Remove and haul away building access ramps
➢ Locate and cap water supply line to structures being demolished
➢ Rough grade demo area to encourage proper drainage.
Locate and plug or cap sewer lateral.
Remove landscaping, turf, shrubs, pavers, and small trees within demo area
Remove and haul away office furniture within building
Obtain and pay for performance and payment bonds on contract price shown below.
Grand Total: $59,759.00
Please Initial X
General Notes:
1) All work to be performed in (1) mobilization. Additional mobilizations will be charged at $3,500.00ea.
2) Proposed price includes all materials, disposal, CA state prevailing wage labor, and taxes.
3) Client to provide on-site water source for NCR use as dust control during completion of scope of work
4) Work to be completed during normal, M -F daytime hours. OT / holidays not included.
5) Clint to provide all temp fencing, site security, temp toilet facilities, and layout of demo limits.
6) Client to coordinate with utility providers for safe off / removal of gas and electrical services, prior to NCR mobilization.
7) Client to obtain demo permit from City.
8) Client to provide asbestos survey report prior to NCR mobilization. Client or others to perform asbestos abatement if
required, prior to mobilization for demo.
Please Initial X
EXCLUSIONS:
➢ Removal or storage of items to be saved or reinstalled.
➢ Shoring, lagging, bracing or underpinning work of any kind.
➢ Utility repair or relocations.
➢ Removal of lead, heavy metals, asbestos, or contaminated soils
➢ Removal of septic tanks, wells, fuel system piping, UST's, or other underground structures
➢ Hazardous materials testing
➢ SWPP's / Erosion Control / BMP's
➢ Demo Permits
➢ Removal of previous tenant vehicles, trash, furniture, or other abandoned items on site.
Please Initial X
11 Page
Lic. 989559
-NCR
National Construction and Remediation, Inc.
Hereinafter referred to as NCR REVISED 08/09/22
Conditions of the Proposal
The project will be scheduled and worked on a straight time, normal working schedule of eight hours per day, Monday thru
Friday, excluding holidays.
This proposal is based on CA state prevailing wage rates.
The customer will provide all necessary water and usable electrical power. The customer is responsible for removing all
moveable objects and furniture from the work areas that the customer wishes to keep, re -use, or re -install.
Parking for NCR work related vehicles and crews must be provided near the work area.
This proposal is based upon NCR terms and conditions as outlined in this proposal.
This proposal is subject to change and may be withdrawn if not accepted within sixty (30) days of this date.
21 Page
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 as Exhibit "F" to the Contract.
Failure to do so may, in the sole discretion of City, result in the forfeiture of Contractor's bid
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.
ATTACHMENT 1
PAGE 26 OF 36
61147 02100\14019172 3
EXHIBIT "D"
CERTIFICATION
LABOR CODE - SECTION 1861
f, the undersigned Contractor, am aware of the provisions of Section 3700, et sea., of the
California Labor Code which require every employer to be insured against liability for Worker's
Compensation or to undertake self-insurance in accordance with the provisions of the Code, and
I, the undersigned Contractor, agree to and will comply with such provisions before commencing
the performance of the Work on this Contract.
National Construatimediation, Inc.
By:
azure
Robert Ackermann
Name (Print)
Director of Safes
Title (Print)
ATTACHMENT 1
PAGE 27 OF 36
61147.02100%14019172.3
EXHIBIT "E"
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
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. Seep:l/www.dir.ca. ovlPublic-
Works/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor's and
subcontractors' current registration with the Department of Industrial Relations to perform public
work.
Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code
sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of
Industrial Relations.'
Name of Contractor: National Construction and Remediation Inc.
DIR Registration Number: 1000056160
DIR Registration Expiration: 6/30/2023
Small Project Exemption: Yes or X No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further
acknowledges:
Contractor shall maintain a current DIR registration for the duration of the project.
Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in
its contract with subcontractors and ensure that all subcontractors are registered at the
time of bid opening and maintain registration status for the duration of the project.
Failure to submit this form or comply with any of the above requirements may result in a
finding that the bid is non-responsive.
Name of Contractor NCr R
Demo
Name and Title
rRobert Ackermann - Director of Sales
Dated 08/24/22
' If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under
Labor Code Sections 1725.5 and 1771.1, please mark "Yes" in response to "Small Project Exemption."
ATTACHMENT 1
PAGE 28 OF 36
61147.02100' 14019172.3
EXHIBIT "F"
PAYMENT AND PERFORMANCE BONDS
61147.02 1 00\ l 4019172.3
ATTACHMENT 1
PAGE 29 OF 36
PERFORMANCE BOND
Bond No. 1001192797
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of San Juan Capistrano (hereinafter referred to as 'City") has
awarded to National Construction and Remediation Inc. (hereinafter referred to as the
"Contractor") an agreement for Demolition of Former Utility Building Department (hereinafter
referred to as the "Project).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in
the Contract Documents for the Project dated August 16. 2022, (hereinafter referred to as
"Contract Documents"), the terms and conditions of which are expressly incorporated herein by
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, National Constroction and Renwdliatlon. Inc.. the
undersigned Contractor and U. $. Spec[ft Inst[gnce Company_ as Surety, a corporation
organized and duly authorized to transact business under the laws of the State of Caftmia, are
held and firmly bound unto the City in the sum of ffft nine thousand seven hundred fift nine
and 00100 DOLLARS. [559,759.2a), said sum being not less than one hundred percent (100°x)
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 City's rights or the Contractor or Surety's obligations under the Contract, law or equity,
including, but not limited to, California Code of Civil Procedure section 337.15.
ATTACHMENT 1
PAGE 30 OF 36
61147.02100\1 4019172.3
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 City's option:
(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. The term
"balance of the contract price" as used in this paragraph shall mean the 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. The term
"balance of the contract price" as used in this paragraph shall mean the 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 City's objection to Contractor's further participation in the 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 81 day of SepWmbor,
2022.
(Corporate Seal) National Construction and Remediation.
Inc.
-
ATTACHMENT 1
PAGE 31 OF 36
61147, 02100\ 14019172.3
Title
U. & Soeclalty insurance Company
(Corporate Seal)
By
landi, Attomey-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of
corporate authority attached.
(Attach Attomey-in-Fact Certificate)
The rate of premium on this bond is N/A per thousand.
The total amount of premium charges, $ NIA.
(The above must be filled in by corporate attorney.)
THIS (S 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)
U. S. S cialt Insurance Qompany
1_MacArlhur Place. Suite 550
anta Ana CA 92707
Patriot Risk & Insurance Services. LLC
2415Camp-us Dr,, Suite 230
Irvine, CA 92612
(Telephone number of Surety and 714-744-70041949-486- 917
Agent or Representative for service
of process in California)
NOTE: A copy of the Power-of-Attomey authorizing the person signing on behalf of the Surety to
do so must be attached hereto.
ATTACHMENT 1
PAGE 32 OF 36
61147.021 001140191723
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 Califomia
County of Orange }
On �� &41r'before me, Lauren Emily Bierman
(insert name and We of the officer)
personally appeared James Sit Salandi
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(a) istan
subscribed to the within instrument and acknowledged to me that hely executed the same in
his/kW t v$r authorized capacity(i*, and that by his/kaxfreir signature(s) on the instrument the
person(a), 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 Califomia that the foregoing
paragraph is true and correct.
WITNESS my, hand and official seal. eu '""�'"`•; LAURENEMILY131ERMAM
COMM. # 2271982 ;D
nw W F NOTARY Pl18 C CALIFORNIA X
tL' ORANGE COUNTY
MY COMM. EXP. JAN 15, 2023
Signature �/lJ� (Seat)
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 C- S
On LVA,' 16 . 20 ZL, before me, CtV'l D1 n V�p r Notary Public, personally
appeared , who proved tome on the basis of satisfactory
evidence to be the personM whose name(r# is/am subscribed to the within instrument and acknowledged to
me that heloemt 6y executed the same in his4*r/Weir authorized capacity(ids), and that by hislhiri'tfieir
signature(p) on the instrument the person}, or the entity upon behalf of which the persopM 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.
NW* Pued"
ra
.p L- A"Pl-Cwn li3C fms
Ccme7.ti11pw-Ap72 m J
Signature of Notary Public
WITNESS my hand and official seal.
f
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
p Individual
❑ Corporate Officer
- Title(s) — - --
❑ Partner(s) ❑ Limited
❑ General
❑ Attomey-In-Fact
❑ Trustee(s)
❑ Guardian/Conservwor
❑ Other.
Signer is representing:
Name Of Person(s) Or Entity(os)
61147.02100\14019172.3
TMe or Type of Domnent
C1�I'.z
Date of Dowry
Signer(s) Other Than Named Atwve
ATTACHMENT 1
PAGE 33 OF 36
PAYMENT BOND
Bond No. 1001192797
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of San Juan Capistrano (hereinafter designated as the "City"), by
action taken or a resolution passed. Auqust 16'x, 2022 has awarded to National
Construction and Remediabon. Inc. hereinafter designated as the "Principal," a contract for the
work described as follows:
Demolition of Former Utility Building Department _
(the "Project"); and
WHEREAS, the work to be performed by the Principal is more particularly set forth in the
Contract Documents for the Project dated August 16. 2822 ("Contract Documents"), the 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 worts or labor the Surety
on this bond will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and U. S. Specialty Insurance Company as
Surety, are held and firmly bound unto the City in the penal sum of fiftnine thousand seen
hundred f"iitY nine and 00/00 DOLLARS, [569,759.001 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,
ATTACHMENT 1
PAGE 34 OF 36
61147.02 1 001140 1 91 72.3
addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement
pertaining or relating to any scheme or work of improvernent herein above described, or pertaining
or relating to the famishing 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 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 reamed 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 8th day of
_$eptember 2022.
(Corporate Seal) National Construction and Remedlation,
Inc. = r
By
Title of .
U. S. $mciaftv Insumnce corn n
(Corporate Seal)
By
catt i, Attomey-in-Fact
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.
ATTACHMENT 1
PAGE 35 OF 36
61147.02100\14019172,3
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 Orange
On 2,4-,_ before me, Lauren Emily Bierman
(insertname and title of the officer)
personally appeared James Scott Salandi
who proved to me on the basis of satisfactory evidence to be the person(x) whose name(s) Is/an
subscribed to the within instrument and acknowledged to me that he/Kh"" executed the same in
his/h v Mtdr authorized capacity(fesiy, and that by hWkexMek 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.
,sem °` r4�} LAUREN EMILY;1ER AA11
WITNESS my hand and official seal. COMM. # 2271982 A
a NOTARY MtIGi"AVORRA N
IY• ORANGE COUNTY
MY COMM. EXP. ,IAN 15, 261]7
Signature (Seat)
Notary Acknowledgment
A notary public or other officer completing this certillcate
v+ertfes 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 4y� If S
On�aEnoyxy
16
,. 2U?-, before me, ti\nv�cl
rPG P 5.. Notary Public, personally
appeared
,v+
who proved tome on the basis of satisfactory
evidence to be the personas) whose name($) isAp* subscribed to the within instrument and acknowledged to
me that he/sWe4hey executed the same in his44(r/, `teir authorized capacityVs), and that by histhod0lboir
signature(:{) on the instrumerd the person(s), or the entity upon behalf of which the personal 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.
Merle Paredes
I/oLry Publk - CaIlloTls r
Lm AngMn CowtV
Comnluloo/23162 6
1Ry Comm. Ex;*": Aar 22, 7[126
Signature or Notary Public
WITNESS Orly N9d and official seal.
1
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
0 Individual
0 Corporate Officer
TWS) '
0 Partner(s) 0 Limited
0 General
❑ Attorney -In -Fact
0 Trustee(s)
0 Guardian/Conservator
0 Other.
Signer is representing:
Name Or Persons) Or EntiWies)
61147.02 1 001140 1 91 72.3
rt g �-►% V:jlar-,A
Title or Type of DoourrLer t
Date of Doalnw
Signers) Other Than Named Ahove
ATTACHMENT 1
PAGE 36 OF 36
TOKIO MARINE
HCC
POWER OF ATTORNEY
AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING COMPANY
UNITED STATES SURETY COMPANY U.S. SPECIALTY INSURANCE COMPANY
KNOW ALL MEN BY THESE PRESENTS: Thal American Contractors Indemnity Company, a California corporation, Texas Bonding
Company, an assumed name of American Contractors Indemnity Company, United States Surety Company, a M aryland corporation
and U.S. Specialty Insurance Company, a Texas corporation {collectively, the "Companies'), do by these presents make, constitute
and appoint:
David S. Jacobson or James Scott Salandi of Irvine California
its true and lawful Attorney(s)-in-fact, each in their separate capacity if more than one is named above, with full power and authority
hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bands, necognizances,
undertakings or other instruments or contracts of suretyship to include riders, amendments, and consents of surety,
providing the bond penatty does not exceed '"'"'ten Million"" ' Dollars
C-110,000,000,00' ], This Power of Attomey shall expire without further action on Apri12 3rd, 2022. This Power of Attorney is granted
under and by authority of the following resolutions adopted by the Boards of Directors of the Companies -
Be it Resolved, that the President, any Vice -President, any Assistant Vice -President, any Secretary or any Assistant Secretary shall be and is hereby
vested with full power and authority to appoint any one or more suitable persons as Attomey(s)-in-Fact to represent and act for and on behalf of the
Company subject to the following provisions:
Attomey--in-Fact may be given full power and authorityfor and in the name of and on behalf of the Company, to execute, acknowledge and deliver, any
and all bonds, recognizances, contracts, agreements or indemnity and ocher eonditionat or obligatory undertakings, including any and all consents
for the release of retained percentages andlor final estimates on engineering and construction contracts, and any and all notices and documents
canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attorney -In -Fact shall be binding upon
the Company as if signed by the President and sealed and effected by the Corporate Secretary.
Se it Resolved, that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of avomey or any
Certificate relating thereto by facsimile, and any power of attorney or Ceniffcate bearing €acslmlle signature or facsimile seal shall be valid and binding
upon the Company with respect to any bond or undertaking to which it is attached.
IN WITNESS WHEREOF, The Companies have caused this instrument to be signed and their corporate seals to be hereto affixed, this
1" day of June, 2018.
AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING OMPANY
UNITED SJATFES SURETj�ZOMPANY _Afk,$PECIALZY 1 t,SURANCE COMPANY
State of California
1d( .=°„
County of Los Angeles
f B—�
y Daniel P. Aguilar, Vice President
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, ar validity of that document _
On this 1a1 day of June, 2018, before me, Sonia O. Carrejo, a notary public, personally appeared Daniel P. Aguilar, Vice President of
American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and U.S. Specialty Insurance
Company who proved to me on the basis of satisfactory evidence to be the person: whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument
the person, or the entity upon behalf of which the person 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.,o
Signature(seal) w•%+n+�.�1:
I, Klo Lo, Assistant Secretary American Contractors Indemnity Company, Texas Bonding Company, United States Surety
Company and U.S. Specialty Insurance Company, do hereby certify that the above and foregoing is a true and correct copy of a Power
of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Boards of Directors,
set out in the Power of Attorney are in full force and effect.
In l�fitttess Whereof, I ve ere to set my ?and and affixed the seals of said Companies at Los Angeles, California this
ii�s� day ofr2e
CorporateSealS ria
Bond No. 19 l,� '�!
dQ.-6
Agency No. 17514`c* ' '•„EY ' r 4� �7� Kio Lo, Assi Secretary
HCUMANPOA06=18
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