HomeMy WebLinkAboutDakeno, Inc.-2012-11 AGREEMENT FOR
Building Demolition and Lot Clearing of property located at
21974 and 21992 De Berry Street
On this 28h day of February, 2012, the CITY OF GRAND TERRACE acting as the
Successor Agency to the Community Redevelopment Agency, hereinafter referred to as "City",
and Dakeno, Inc., 6021 Tarragona Dr., Riverside, CA, Contractor's License No. 250091
hereinafter referred to as "Contractor", mutually agree as follows:
1. Contractor shall furnish all labor, equipment and materials for, and perform the work of
site clearing, debris removal, building and pool demolition and removal, foundation removal,
asphalt and concrete pavement removal, asbestos encapsulation and removal, removal of brick
planters, and general site grading at 21974 De Berry Street and site clearing at 21992 De Berry
Street which is covered in Contractor's Bid Proposal (the "Work"). Contractor shall perform the
Work in accordance with the provisions and requirements of the following Contract Documents:
Notice Inviting Bids (Bid No. GTB 2011-05); City 's Special Provisions; Contractor's Proposal
and Bid Schedule, performance bond and payment bond; this Agreement; and all documents,
maps, texts and items referred to in the foregoing documents. These Contract Documents are
incorporated herein and are intended to be correlative and constitute Contractor's performance
obligations. The provisions of the California Building Code and Public Contract Code shall take
precedence over any conflicting provisions in the Bid Specifications, and the specific terms and
conditions of this Agreement shall control and have precedence over any contradictory or
inconsistent terms or conditions included in any of the Contract Documents and shall be
controlling in questions of interpretation.
2. City shall pay Contractor the Contract Price of Thirteen Thousand three hundred
eleven Dollars ($13,311.00) which includes all California sales or use tax and County and City
taxes, for the performance of all of the Work according to the terms and conditions contained or
referred to herein, the completion of the improvements in strict conformity with the provisions
hereof and the guarantee of the Work and improvements for the periods set forth in the Contract
Documents.
In accordance with Section 22300 of the California Public Contract Code, Contractor may
substitute securities for any monies withheld by City to ensure performance of the Contract.
Such substitution shall be made at the request and expense of Contractor. Securities equivalent
to the amount withheld may be deposited with City or with a state or federally chartered bank as
escrow agent. Securities eligible for substitution shall include those listed in Section 16430 of
the Government Code, bank or saving and loan certificates of deposit, interest bearing demand
deposit accounts, standby letters of credit,or any other security mutually agreed to by Contractor
and City.
Thirty-five (35) days after City accepts the Work and files a Notice of Completion, City
shall pay Contractor the amounts City deducted and retained from its progress payments, except
such sums thereof which are required by law or authorized by the Contract to be further retained.
3. Contractor shall complete all of the Work of the Contract within twenty (20) working
days after the date specified to Contractor in the Notice to Proceed issued by City.
4. Failure of Contractor to complete the Work within the time allowed will result in
damages being sustained by City. Such damages are,and will continue to be,impracticable and
extremely difficult to determine. For each consecutive calendar day in excess of the time
specified for the completion of Work, as adjusted in accordance with Section 6-9 of the Standard
Bid Specifications,Contractor shall pay to City , or have withheld from monies due Contractor,
the sum of Five Hundred Dollars($500.00). Execution of this Agreement shall constitute
agreement by City and Contractor that said sum is the minimum value of the costs and actual
damage caused by the failure of Contractor to complete the Work within the allotted time. Such
sum is liquidated damages and shall not be construed as a penalty, and may be deducted from
payments due Contractor if such delay occurs.
5. Contractor shall not be compensated for any extra materials used or time expended, over
and above the Contract Price, unless prior written approval for the same has been granted by
City.
6. As a condition of Contract, Contractor and all subcontractors shall secure business
licenses to operate in the City of Grand Terrace, and shall also secure any other licenses or
permits which may be required.
7. Contractor acknowledges and agrees that with respect to any business tax or penalties
thereon, utility charges, invoiced fee or other debt which is owed, or which becomes owed, by
Contractor to City, City reserves the tight to withhold and offset said amounts from any
payments, refunds or reimbursements owed by City to Contractor under the Contract. Notice of
such withholding and offset shall promptly be given to Contractor by City in writing. In the
event of a dispute as to the amount owed or whether such amount is owed to City, City will hold
such disputed amount until either the appropriate appeal process has been completed or until the
dispute has been resolved.
8. Prior to City 's execution of this Agreement, Contractor shall furnish City completed
forms of the two surety bonds included within the Special Provisions, one as security for the
faithful performance of the Contract and one as security for the payment of all persons
performing labor and furnishing materials in connection with the Contract. Both bonds shall be
in the amount of 100% of the Contract Price and shall be subscribed by a corporate surety which
is authorized to transact surety insurance business in the State of California with a policy
holder's rating of A or higher and a financial class of VII or larger. Should any bond or surety
become insufficient, Contractor shall furnish City a new bond within ten (10) days after
receiving notice from City. No payments will be due or paid under the Contract until any and all
bond deficiencies have been remedied.
9. By executing this Agreement, Contractor certifies that Contractor is aware of and will
comply with Section 3700 of the Labor Code of the State of California requiring every employer
to be insured against liability for workers' compensation or to undertake self-insurance before
commencing any of the Work. Contractor shall comply with Labor Code Section 1861 by
signing and filing the workers' compensation certification with the City Attorney.
Prior to City's execution of this Agreement, Contractor shall file with City either (1) a
certificate of insurance or self-insurance evidencing that such insurance in effect, or that
Contractor is self-insured for such coverage; or (2) a certified statement that Contractor has no
employees, and acknowledging that if Contractor does employ any person, the necessary
certificate of insurance will immediately be filed with City. Any certificate filed with the City
shall provide that City shall be given ten (10) days prior written notice before modification or
cancellation thereof.
Contractor's workers' compensation carrier shall be authorized to transact insurance
business in the State of California with a policy holder's rating of A or higher and a financial
class of VII or larger.
10. Except as to the sole negligence, active negligence or willful misconduct of the City,
Contractor shall indemnify and hold the City and the City of Grand Terrace, and their
employees, officers, managers, agents and council members, harmless from any and all loss,
damage, claim for damage, liability, expense or cost, including attorneys' fees, which arises out
of, or is related to, or is in any manner connected with, the performance of work, activities,
operations or duties of Contractor, or anyone employed by or working under Contractor, and
from all claims by anyone employed by or working under Contractor for services rendered to
Contractor in the performance of this Agreement, notwithstanding that the City may have
benefited from their services. This indemnification provision shall apply to any acts or
omissions, willful misconduct or negligent conduct, whether active or passive, on the part of
Contractor or of anyone employed by or working under Contractor.
The parties expressly agree that any payment, attorneys' fees, costs or expense that the
City incurs or makes to or on behalf of an injured employee under the City's self-administered
workers' compensation is included as a loss, expense or cost for the purposes of this Section, and
that this Section shall survive the expiration or early termination of the Agreement.
11. Contractor agrees, at its cost and expense, to promptly defend the City and the City
of Grand Terrace and their employees, officers, managers, agents and council members
(collectively the "Parties to be defended") from and against any and all claims, allegations,
lawsuits or other legal proceedings which arise out of, or are related to, or are in any manner
connected with: (1) the work, activities, operations, or duties of Contractor, or of anyone
employed by or working under the Contractor, or (2) any breach of this Agreement by
Contractor. This duty to defend shall apply whether or not such claims, allegations, lawsuits or
proceedings have merit or are meritless, or which involve claims or allegations that any of the
Parties to be defended were actively, passively or concurrently negligent, or which otherwise
assert that the parties to be defended are responsible, in whole or in part, for any loss, damage or
injury. Contractor agrees to provide this defense immediately upon written notice from the City,
and with well qualified,adequately insured and experienced legal counsel acceptable to the City.
12. Prior to City 's execution of this Agreement, Contractor shall secure, and shall
thereafter maintain until completion of the Contract, such commercial general and automobile
liability insurance as shall protect Contractor from claims for damages for personal injury,
including accidental death, as well as from claims for property damage which may arise from or
which may concern operations under the Contract, whether such operations be by or on behalf of
Contractor, any subcontractor or anyone directly or indirectly employed by, connected with or
acting for or on behalf of any of them.
All liability insurance shall be issued by an insurance company or companies authorized to
transact liability insurance business in the State of California with a policy holder's rating of A
or higher and a financial class of VII or larger and shall cover commercial general and
automobile liability for both bodily injury (including death) and property damage, including but
not limited to aggregate products, aggregate operations, aggregate protective and aggregate
contractual with the following minimum limits:
Commercial General $1,000,000 per occurrence
$2,000,000 aggregate
Automobile $1,000,000 per occurrence
Policies or original certificates of insurance and completed forms of the Additional Insured
Endorsement included within the Special Provisions (or insurance company equivalent
acceptable to City) evidencing the coverage required by the Contract for both commercial
general and automobile liability, which coverage is more particularly set forth in Section 7-3 of
the Special Provisions, shall be filed with City and shall include City and the City of Grand
Terrace as additional insureds. The policy or policies shall be in the usual form of public
liability insurance,but shall also include the following provisions:
Solely as respects work done by and on behalf of the named insured for the City, it is
agreed that the City of Grand Terrace and the Successor Agency to the Redevelopment Agency
and their officers and employees are added as additional insureds under this policy.
The policies shall not be canceled unless thirty (30) days prior written notification of
intended cancellation has been given to City by certified or registered mail.
The insurance policy or policies shall also comply with the following provisions:
a. Policies shall include premises/operations, products completed operations,
independent contractors, owners and contractors' protection, explosion, collapse,
underground hazard, broad form contractual, personal injury with employment
exclusion deleted,and broad form property damage.
b. The policy shall be endorsed to waive any right of subrogation against the City,
and its subconsultants, employees, officers, agents and directors for work
performed under this Contract.
c. If policies are written on a claims made basis, the certificate should so specify and
the policy must continue in force for one year after completion of the project. The
retroactive date of the coverage must also be listed.
d. The policy shall specify that the insurance provided by Contractor will be
considered primary and not contributory to any other insurance available to the
City of Grand Terrace and the Successor Agency to the Redevelopment Agency.
13. Prior to City 's execution of this Agreement, Contractor shall obtain and shall
thereafter maintain during the term of this Agreement, pollution liability insurance in the
minimum amount of $1,000,000 to protect the City from claims arising from Contractor's
activities. Contractor shall file with the City a certificate of insurance evidencing the coverage
required herein.
Contractor's pollution liability policy shall be issued by an insurance company
authorized to transact insurance business in the State of California with a policy holder's rating
of A or higher and a financial class of VII or larger.
14. Contractor and all subcontractors are required to pay the general prevailing wage
rates of per diem wages and overtime and holiday wages determined by the Director of the
Department of Industrial Relations under Section 1720 et seq. of the California Labor Code and
implemented by Resolution No. 13346 of the City Council of the City of Grand Terrace. The
Director's determination of prevailing rates is available on-line at
www.dir.ca.eov/dlsr/statistics research.html and is referred to and made a part hereof; the wage
rates therein ascertained, determined and specified are referred to and made a part hereof as
though fully set forth herein.
15. Contractor is aware of and stipulates that Contractor will also comply with the
following sections of the California Labor Code:
(A) Section 1775 prescribing sanctions for failure to pay prevailing wage rates;
(B) Section 1776 requiring the making, keeping and disclosing of detailed payroll
records and prescribing sanctions for failure to do so;
(C) Section 1777.5 prescribing the terms and conditions for employing registered
apprentices;
(D) Section 1810 providing that eight hours of labor shall be a day's work; and
(E) Section 1813 prescribing sanctions for violations of the provisions concerning
eight hour work days and forty hour work weeks.
16. Except as provided in Section 12940 of the California Government Code, during
Contractor's performance of the Contract, Contractor shall not discriminate on the grounds of
race, religious creed, color, national origin, ancestry, age, physical handicap, medical condition
including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any
condition related thereto, marital status, sex or sexual orientation in the selection and retention of
employees and subcontractors and the procurement of materials and equipment. Contractor shall
also comply with the requirements of the Americans with Disabilities Act in the performance of
the Contract.
17. Service of any notices, bills, invoices or other documents required or permitted under
the Contract shall be sufficient if sent by one party to the other by United States mail, postage
prepaid and addressed as follows:
City Contractor
City of the City of Grand Terrace Dakeno,Inc.
Community Development Director 6021 Tarragona Dr.
22795 Barton Road Riverside, CA 92509
Grand Terrace, California 92313
18. Any action at law or in equity brought by either of the parties hereto for the purpose of
enforcing a right or rights provided for by this Agreement shall be tried in a court of competent
jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all
provisions of law providing for a change of venue in such proceedings to any other county.
19. The individuals executing this Agreement and the instruments referenced herein on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions hereof and thereof.
20. Each provision, term, condition, covenant and/or restriction, in whole and in part, in this
Agreement shall be considered severable. In the event any provision, term, condition, covenant
and/or restriction, in whole and/or in part, in this Agreement is declared invalid,unconstitutional,
or void for any reason, such provision or part thereof shall be severed from this Agreement and
shall not affect any other provision, term, condition, covenant and/or restriction of this
Agreement and the remainder of the Agreement shall continue in full force and effect.
21. This Agreement constitutes the final, complete, and exclusive statement of the terms of
the agreement between the parties pertaining to the subject matter of this Agreement, and
supersedes all prior and contemporaneous understandings or agreements of the parties. Neither
party has been induced to enter into this Agreement by, and neither party is relying on, any
representation or warranty outside those expressly set forth herein.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly
executed on the day and year first above written.
DAKENO, Inc. CITY OF GRAND TERRACE, as the
Successor Agency to the Community
Redevelopment Agency
By: yidivt
l/`tt> By: .%/ s�
Michael K. Miller,Dire City Manager
Mirk .(4I) ,Cil A Y A ,gy Attest: Mirk( (, �2
City Clerk
l-4 Meg 44 a 44rt-1-Vie -PTZ. C
(Printed Name and Title)
APPROVED AS TO FORM:
By:
City Attorney
WORKERS' COMPENSATION CERTIFICATION
I am aware of the provisions of Section 3700 of the Labor Code which require
every employer to be insured against liability for workers' compensation or to undertake
self-insurance in accordance with the provisions of that code, and I will comply with such
provisions before commencing the performance of the work of this contract.
DATED: 3 I I(el I2, Dakeno, Inc.
By At .k ad
Michael K. Miller,Director