American Asphalt South Inc-2006-15 {
October 11, 2006
CA-LI FOR NIA
22795 Barton Road
Grand Terrace American Asphalt South,Inc.
California 92313 14436 Santa Ana Ave.
Fontana, CA 92337
Civic Center
(909)430-2212 Attention: Lyle Stone
Fax(909)783-7629 _
Reference: Contract -Road Slurry Services
Dear Mr. Stone: {
City Clerk's
Department Enclosed please find a fully;executed copy of the contract between the City of
Grand Terrace and American Asphalt South, Inc. for your records.
If you have any questions,please don't hesitate to contact me at 909 430-2212.
Sincerely,
Tracey Martinez
Deputy City Clerk
Enclosures
cc: Steve Berry,Assistant City Manager
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September 19, 2006
^Kf. 51,17 '1
American Asphalt South, Inc.
14436 Santa Ana Ave.
Fontana, CA 92337
CALIFORNIA
Attention: Lyle Stone
22795 Barton Road
Reference: Contract Award -Road Slurry Services
Grand.Terrace .
California 92313
Civic Center Dear Mr. Stone:
(909)430-2212
Fax (909) 783-7629 I am pleased to inform you that the City Council awarded the above.referenced
contract in the amount of $78,337.00 to your company at their meeting of
September 14, 2006.
I have enclosed the agreement for this project for you to sign and return to our
City Clerk's office at your earliest convenience. Please also enclose with the Agreement the
Department necessary Insurance Certificates in accordance with the contract. Once we are in
receipt of these documents,we will provide you with a fully-executed copy of the
Agreement, as well as a Notice to Proceed.
In the event that you or your subcontractors do not have current City Business
Licenses, they can be obtained from our Finance Department.
If you have any questions or need assistance,please don't hesitate to contact me
at 909 430-2212.
Sincerely,
Tracey Martinez
Deputy City Clerk
Enclosures
cc: Steve Berry, Assistant City Manager
Finance Department
AGREEMENT BETWEEN THE CITY OF GRAND
TERRACE AND AMERCIAN ASHPALT SOUTH INC.
INC., (CONTRACTOR) FOR THE PROVISION OF ROAD
TYPE II ROAD SLURRY SERVICES '
THIS AGREEMENT IS ENTERED INTO THIS 14 DAY OF SEPTEMBER 2006 BY AND
BETWEEN THE CITY OF GRAND TERRACE ("CITY") AND CONTRACTOR FOR ROAD
SLURRY SERVICES.
RECITALS
WHEREAS, CONTRACTOR is a licensed contractor who is qualified and a licensed in the
State of California.
WHEREAS, CITY desires to utilize the services of CONTRACTOR to road slurry services.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
SECTION 1. SERVICES OR SCOPE OF WORK
Contractor shall perform TYPE II Road Slurry Services as follows:
A. For and in consideration of the payments and agreements hereinafter mentioned to be made and
performed by said City, said Contractor agrees with said City to perform and complete in a
workmanlike manner all work required under the City's Specifications, to furnish at his own
expense all labor, materials, equipment, tools and services necessary therefore, except those
materials, equipment, tools and services as may be stipulated in said specification to be furnished
by said City and to do everything required by this Agreement and the said Specifications.
B. In entering into a Maintenance Contract for a subcontract to supply goods, services or materials
pursuant to.a Maintenance Contract, the Contractor or subcontractor offers and agrees to assign to
the City all rights, title, and interest in and to all causes of action it may have under Section 4 of
the Clayton Act (15 U.S.C. Sec. 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 Maintenance Contract or the subcontract.
This assignment shall be made and become effective at the time the City tenders final payment to
the Contractor without further acknowledgment by the parties.
C. DEFINITION OF PROPOSED ITEMS OF WORK
The unit prices to be paid for the items listed on the form EXHIBIT "A-2", shall include
full compensation for furnishing all permits, labor, materials, tools and equipment
necessary to complete all work required to accomplish the following items in accordance
with the Standard Specifications, these Special Conditions and any detail drawings or
plans.
1. TYPE II ROAD SLURRY SERVICES
Work included under this item shall consist of furnishing all permits, labor,
materials, fees, environmental notices and equipment to complete said TYPE II
ROAD SLURRY SERVICES in accordance with the applicable sections of the
Standard Specifications, these Special Conditions and the 2001 California Codes.
All locations:
-The Contractor shall be responsible for all traffic management and the obtaining
and placing of any required temporary construction warning signs' and traffic
delineators.
-The Contractor shall work between the hours of 7:30 a.m. - 5:30 p.m., Monday
through Friday.
-Notification of all residents with door hangers noting the time and date of the
street closures
The work shall be done under the supervision of the Assistant City Manager and no work or
portion of the work shall be paid for until it is approved for payment by the Assistant City
Manager, but this shall not prevent approval of and payment for completed portions of the work as
it progresses
SECTION 2. SERVICES PROVIDED
CONTRACTOR shall provide all labor, supervision and equipment required to perform said services.
SECTION 3. COMPENSATION
Contractor shall be paid pursuant to the Schedule and Prices submitted in Exhibit"A-2".
The total TYPE II ROAD SLURRY SERVICES is not to exceed $78,370:80 without written consent
by the CITY.
SECTION 4. BUSINESS LICENSE
CONTRACTOR shall, within five (5) days of executing this contract, obtain a current City of Grand
Terrace business license, during the term of this contract or any extension thereto.
SECTION 5. INDEPENDENT CONTRACTOR
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The parties agree that CONTRACTOR is an independent contractor who is,-being paid to produce a
result. CONTRACTOR is in no way an employee of CITY. CONTRACTOR"controls.the means of
accomplishing the work. CONTRACTOR shall pay�all Federal and State payroll taxes for employees
of CONTRACTOR and said employees shall in no way be deemed or construed to be employees of
CITY for any purposes.
SECTION 6. EFFECTIVE DATE/TERM
This agreement shall become effective upon the.date of execution of the Agreement by both parties.
This contract shall .terminate on November 15, 2006 unless renewed. All work musk be completed
within 45 days of the contract effective date
SECTION 7. TERMINATION {
-City shall have the right to terminate this agreement at a date earlier than specified for default. Before
CITY exercises said right it shall give CONTRACTOR 10, days notice of the facts constituting the
default and a chance to cure any deficiencies within that time. If those deficiencies have not been
cured, CITY shall have the right to send CONTRACTOR.notice that the contract has been terminated
for default pursuant to this paragraph by giving notice as provided herein.
SECTION 8. ASSIGNMENT
No assignment of this contract may be made without the express written consent of CITY.
SECTION 9. NOTICE
The parties may give notice under this contract by;sending such notice certified mail addressed as
follows:
TO CITY: CITY OF GRAND TERRACE
22795 Barton Rd.
Grand Terrace, CA 92313
ATTN:'STEVE BERRY
TO CONTRACTOR:
AMERICAN ASPHALT SOUTH, INC.
14436 Santa Ana Ave.
Fontana, CA 92337
Such notice shall be deemed received five(5) days after mailing,whether signed for or not.
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SECTION.10. GRATUITIES
CONTRACTOR warrants that neither it nor any of its employees, agents or representatives has offered
or given any gratuities to CITY'S employees, agents or representatives with a view toward securing
this contract or securing favorable treatment with respect thereto.
SECTION 11. CONFLICT OF INTEREST
CONTRACTOR warrants that he has no blood or marriage relationship, and that he is not in any way
associated with any architect, engineer or other preparer of the plans and specifications for this project.
CONTRACTOR acknowledges that CITY has detailed Conflict of Interest rules, agrees to abide by
those rules, and agrees that any breach of those rules shall give CITY the right to rescind, cancel or
otherwise terminate this agreement, at CITY'S discretion.
SECTION 12. INTEGRATION
This agreement constitutes the entire agreement and understanding between,the parties hereto, and it
shall not be considered modified, altered, changed, or amended in any respect unless in writing and
.signed by the parties hereto.
SECTION 13. NO WAIVER
The failure of the CITY at the time to require performance by the CONTRACTOR of any provisions
hereof shall in no way affect the right of the CITY thereafter to enforce same. Nor shall waiver by the
CITY of any breach of any provisions hereof be taken or held to be a waiver of any succeeding breach
of such provision or as a waiver of any provision itself.
SECTION 14. INSURANCE
The Contractor shall supply insurance and licensing as follows:
Commercial General Liability:
Primary insurance shall be provided on IOSCGL form No. CG 00 01 1185 or 88. Total limits shall be
no less than 1 million dollars per occurrence for all coverage's and 2 million dollars general aggregate.
City and its employees and agents shall be added as additional insureds using ISO additional insured
endorsement form CG 20 10 11 85 (in no event will City accept an endorsement form with an edition
date later than 1990). Coverage shall apply on a primary non-contributing basis in relation to any
other insurance or self-insurance, primary or excess, available to City or any employee or agent of
City. Coverage shall not.be limited to the vicarious liability or supervisory role of any additional
insured. Umbrella Liability Insurance (over primary) shall apply to bodily injury/property damage,
personal injury/advertising injury, at a minimum, and shall include a"drop down"provision providing
primary coverage above a maximum $25,000.00 self insured retention for liability not covered by
primary policies but covered by the umbrella policy. Coverage shall be following form to any
underlying coverage. Coverage shall be provided on a "pay on behalf' basis, with defense costs
payable in addition to policy limits. There shall be no cross liability exclusion. Policies shall have
concurrent starting and ending dates.
Worker's Compensation:
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Shall be written on a policy form providing workers compensation statutory benefits as required by
.,law. Employer's•liability limits-shall be no less than one:million dollars per accident or disease.
Employer's liability coverage shall be scheduled under any umbrella policy described above. Unless
Otherwise agreed, this policy shall be endorsed to waive any right,of subrogation as respects the City,
its employees or agents.
The Contractor shall also provide the City with a Certificate of Worker'•s Compensation Insurance and
completed Declaration Regarding Licenses Status form. Contractors must also have a valid City of
Grand Terrace Business License.
Auto Insurance•
CONTRACTOR shall provide Auto Insurance as follows:
Business Auto/Umbrella Liability Insurance. Primary coverage shall be written on ISO
Business Auto Coverage form CA 00 0106 92 including symbol 1 (Any Auto). Limits shall be no
less than (one) 1 million dollars per accident. Starting and ending dates shall be concurrent. If
Contractor owns no autos, a non-owned auto endorsement to the General Liability policy
described above is acceptable.
SECTION 15 LEGAL ACTION
Should the City bring any legal or equitable action for the purpose of protecting-or enforcing its rights
under-this Agreement, the City shall recover, in addition to all•other relief, its reasonable attorney's
fees and court costs to be,fixed by the Court.
SECTION 16 ATTORNEY'S FEES
The parties agree that should any dispute arise concerning' the interpretation of this contract, or
regarding the performance or non-performance of this contract, that the prevailing party shall be
entitled to reasonable attorney's fees.
SECTION 17 EXTRA WORK
The Contractor hereby agrees that he will not proceed with any Extra Work unless he has been
authorized in writing to do so by CITY.
SECTION 18 PREVAILING WAGE
The successful Bidder will be required to pay not less than the prevailing wage scale determined,
by the Director of the California Department of Industrial Relations, copies of which scale are on
file in the office of the City Clerk and the office of the Director of Public Works/City Engineer
and which shall be made available to any interested party on request. Additionally, the Contractor
shall comply with the provisions of Labor Code Section 1777.5.
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WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above
written.
ATTEST: CITY OF GRAND TERRACE
- B
City,Clerk Mayor
APPROVED AS TO FORM: CONTRACTOR
By:
City Attorney
Title: