Loading...
HomeMy WebLinkAbout14-024 Construction Awards - Project 4411 Lakepoint ParkingCITY Or ilr. LA- 9 LSJ N KE M� D(l IiAM [xTIUMr- REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GRANT M. YATES CITY MANAGER DATE: FEBRUARY 25, 2014 SUBJECT: CONSTRUCTION CONTRACT AWARDS — PROJECT NO. 4411 LAKEPOINT PARK PARKING LOT IMPROVEMENTS Recommendations Award the construction of Lakepoint Park Parking Lot Improvements to FSG Paving in the amount of $116,388.00 with a 10% contingency of $11,000.00 to be used for construction. 2. Authorize the City Manager to execute the contract with FSG Paving. Authorize the budget transfer of $8,825.00, Fund 221 (Park Development Impact Fee) from Machado Park Renovation Project 4373. Authorize the budget transfer of $4,583.00, Fund 221 (Park Development Impact Fee) from the Swick - Matich Park Fencing Project No. 4273. Background In May of 2012, Riverside County Economic Development Agency approved the construction funding of Lakepoint Park Parking Lot Improvements as part of the City of Lake Elsinore's Community Development Block Grant (CDBG) Program for Fiscal Year 2012/13. Design of the parking lot, which included relocation of an existing RTA bus stop from Lakeshore Drive to the entrance of the parking lot, was completed by staff on January 14, 2014. Staff worked closely with RTA to ensure their concerns were addressed in the final design. The planned improvements include removal and reconstruction of failed paved areas, paving the existing dirt parking lot, drainage improvements to eliminate existing ponding areas and installation of a water quality filtration basin to treat parking lot runoff, inclusion of a bus shelter and ADA compliant access from the bus stop to the Senior Center. The project will also include Additive Alternate "A" a double seal coat on the existing asphalt Award Construction Contracts February 25, 2014 Page 2 of 3 surface. The improvements will provide 96 standard parking stalls and four (4) standard ADA parking spaces and two (2) ADA Van accessible and improved traffic circulation for the RTA bus. Other ancillary improvements include striping, concrete wheel stops and an AC berm tree well. Discussion The bids were opened publicly on February 13, 2014 at 2:00 p.m. The City received nine (9) bids from qualified contractors as follows: Base Bid + Alternate "A" 1. FGS Paving San Diego $116,388.00 2. United Paving Company La Mirada $128,858.00 3. Wheeler FSG Paving, Inc. Riverside $147,655.00 4. Crownline Engineering Chino Hills $168,344.50 5. Hailbrink Asphalt Paving, Inc. Corona $166,704.00 6. Roadway Engineering Mira Loma $169,885.00 7. Terra Pave, Inc. Whittier $184,120.00 8. Frank & Son Paving, Inc. Bonita $186,270.30 9. All American Asphalt Corona $199,950.00 The bid consisted of a base bid plus alternate "A" for a parking lot double seal coat with crack filling. Alternative "A" a double seal coat was specified due to the existing AC surface being very coarse. The double seal coat will extend the life of the existing pavement and provide a uniform appearance after paving. In verifying the apparent low bidder, Staff reviewed and recalculated all bids to verify the bidder's proposal. The project is expected to be completed with 20 working days of issuance of the Notice to Proceed. Anticipated Project Schedule Award Construction Contract Preconstruction Meeting Start Construction Notice of Completion Fiscal Impact February 25, 2014 March 13, 2014 March 17, 2014 April 22, 2014 The project is being funded with CDBG funds and Park Development Impact Fee (DIF) funds. Fund 150 CDBG $102,980.00 Fund 221 Park Development Impact Fee $ 20,000.00 Transfer from Project No. 4373 (Fund 221) $ 8,825.00 Transfer from Project No. 4273 (Fund 221) $ 4,583.00 Total $136,388.00 Award Construction Contracts February 25, 2014 Page 3 of 3 Estimated Project Budget: FGS Paving $116,388.00 Construction Contingency $ 11,000.00 Construction Management $ 5,000.00 Inspection $ 4,000.00 Total $136,388.00 *Project Funding /Budget Costs are rounded to the nearest dollar. Prepared by: Peter Ramey Project Manager Ati Eskandari Interim Director of Public Works Approved by Jason Simpson Director, Administrative Services Department Approved by: Grant Yates, City Manager Attachments: Vicinity Map Agreement for Construction Services VICINITY MAP LAKE POINT PARK PARKING LOT IMPROVEMENTS PROJECT NO. 4411 Project Site AGREEMENT PROJECT NO. 4411 AGREEMENT PROJECT NO. 4411 LAKEPOINT PARK PARKING LOT IMPROVEMENTS 420 E. Lakeshore Drive This Contract Agreement, made and entered into as of the date signed by the Mayor, by and between the City of Lake Elsinore, a municipal corporation, County of Riverside, State of California, hereinafter called the "City" and FGS Paving , hereinafter called the "Contractor." That the City and the Contractor for the consideration hereinafter named, agree as follows: 1. The complete Contract includes all of the Contract documents as if set forth in full herein, to wit, the Contract Agreement, any and all federal contract requirements attached or not attached hereto, any and all Contract Change Orders issued after the execution of the Contract Agreement, Addenda No(s). 1 & 2 issued prior to the opening of the Bids, the Special Provisions (which includes the General Provisions and Technical Provisions), the Project Plans, the Standard Plans, the Standard Specification, reference Specifications, the Bidder's Proposal, the Notice Inviting Bids, the Non - Collusion Affidavit, Federal provisions and requirements, any and all Federal Certifications, the Faithful Performance Bond, the Labor and Materials Payment Bond and insurance, all of which are essential parts of this Contract and made a part of this Contract Agreement. In the event of any conflict in the provisions thereof, the terms of said Contract documents as set forth above shall control, each over the other, in the order provided. 2. The Contractor shall furnish all materials, tools, equipment and labor, except as otherwise provided in the Plans or Special Provisions, and will perform all the work which is necessary to complete in a good, workmanlike and substantial manner the above said project in accordance with the Contract documents for this project, the Contract documents which are hereby specifically referred to and by such reference made a part hereof. 3. The City will pay the Contractor and the Contractor agrees to receive and accept the prices set forth in the Bid Schedule as full compensation for the work required under the bid items awarded by the City, to wit, the Base Bid Item(s) and Additive Bid Item(s) in the sum total amount of $ 116.388.00 , subject to additions or reductions of the quantities of the various bid items at the unit prices bid, for furnishing all materials and for doing all the work contemplated and embraced under this Contract Agreement; for all loss or damages arising out of the nature of the work aforesaid, or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work, until the work is accepted by the City Council; for all expenses incurred by or in consequence of the suspension or discontinuance of work; and for well and faithfully completing the work, the whole thereof, in the manner and in accordance with the Contract documents therefore and the requirements of the Engineer under them. 4. The Contractor hereby agrees to commence work pursuant to this Contract within fourteen (14) calendar days after the date of authorization specified in the Notice to Proceed. The Contractor agrees to diligently prosecute the contracted work, including corrective items of work, day to day thereafter, to completion, within Twenty (20 ) working days after said date in the "Notice to Proceed with Construction," except as adjusted by subsequent Contract Change Order(s). 5. The City and Contractor hereby agree that in case all construction called for under the Contract is not completed within the time hereinabove specified, including City caused delays or extensions, damages will be sustained by the City and that, it is and will be impracticable or extremely difficult to ascertain and determine the actual amount of damages the City will sustain in the event of, and by reason of, such delay. AGREEMENT PROJECT NO. 4411 It is, therefore, agreed that such damages shall be presumed to be in the amount of $250.00 per calendar day, and that the Contractor will pay to the City, or City may retain from amounts otherwise payable to Contractor, said amount for each calendar day by which the Contractor fails to complete the work, including corrective items of work, under this Contract Agreement within the time hereinabove specified and as adjusted by Contract Change Order(s). The Contractor will not be assessed liquidated damages for delay(s) occasioned by the failure of the City or of the owner of a utility to provide for the removal or relocation of utility facilities. 6. The Contractor shall name as additional insured, the City of Lake Elsinore, and the County of Riverside CDBG and shall furnish the City with a certificate of insurance evidencing liability insurance policy or policies which shall provide coverage for owned and non -owned automobiles; manufacturers and Contractor's liability; broad form property damage in any case where the Contractor has any property belonging to the City in his care, custody or control; owners and Contractor's protective liability; blanket contractual liability; products and completed operations coverage; coverage for collapse, explosion, and where any excavation, digging or trenching is done with power equipment; and shall bear an endorsement containing the following Provisions: Solely as respect to work done by or on behalf of the named insured for the City of Lake Elsinore, it is agreed that the City of Lake Elsinore, the County of Riverside CDBG, its officers, employees and agents, are added as additional insured under this policy and the coverage provided hereunder shall be primary insurance and not contributing with any other insurance available to the City of Lake Elsinore, California, its officers, employees and agents; under any third party liability policy. It is further agreed that the other insurance provision(s) of the policy are amended to conform therewith. The endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf. Insurance companies providing insurance here under shall be rated (A minus: VII - Admitted) or better in AM Best's Insurance Rating Guide and shall be legally licensed and qualified to conduct insurance business in the State of California. The terms of the insurance policy or policies issued to provide the below insurance coverage(s) shall not be amended or canceled by the carrier without thirty (30) days prior written notice by certified or registered mail of amendments or cancellation to the City, except that cancellation for non - payment of premium shall require (10) days prior written notice by certified or registered mail. In the event the said insurance is canceled, the Contractor shall, prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts established. All liability insurance policies shall bear an endorsement or shall have an attached rider which provides that the City of Lake Elsinore will be notified by certified or registered mail at least 30 days prior to the effective date of cancellation, non - renewal, or material alteration of such policy. All liability insurance shall cover comprehensive general 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: AGREEMENT PROJECT NO. 4411 A combined single limit for Bodily Injury Liability and Property Damage Liability of $2,000,000.00 for each occurrence will be considered equivalent to the above minimum limits for Comprehensive General Liability. Property Damage Insurance shall cover full replacement value for damages to any property caused directly or indirectly by or from acts or activities of the Contractor or its sub - contractors or any person acting for the Contractor or under its control or direction. The Contractor shall procure and maintain, at its sole expense, and throughout the term of this Contract Agreement and any extension thereof, Public Liability and Property Damage Insurance coverage for owned and non -owned automotive equipment operated. Such coverage limits shall not be less than $1,000,000 combined single limit. Any deductibles or self- insured retention must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self- insured retention as respects the City, its officers, officials, employees and volunteers; or the contractor shall procure a bond guaranteeing payment of losses and related investigation, claim administration, and defense expenses. The Contractor shall also furnish the City with a certificate evidencing Worker's Compensation Insurance with limits as established by the State of California. The Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 7. The Contractor hereby agrees to provide and maintain in effect two (2) good and sufficient Surety Bonds for one hundred percent (100 %) each of the contract price. The bonds shall be a "Faithful Performance Bond" which shall guarantee the faithful performance of all work and a "Labor and Materials Payment Bond" which shall secure the payment of the claims of labor, mechanics, or materialmen for all work under the Contract pursuant to Section 3247 of the Civil Code. 8. The Contractor, the Contractor's heirs, executors, administrators, successors, or assigns guarantee that all work performed under this Contract fully meets the requirements thereof as to quality of workmanship and materials furnished. If any defects in materials or workmanship become evident within a period of one year from the date of the acceptance of the work by the City Council, the Contractor shall, at his or her own expense, make any repair(s) or replacement(s) necessary to restore the work to full compliance with the Plans and Specifications. 9. Contractor and owner do hereby acknowledge that this project will be partially or fully funded with Community Development Block Grant (CDBG) funds [24CFR 570] and is therefore subject to applicable Federal procurement, labor, environmental, equal opportunity, and other regulations. 10. Contractor shall maintain and keep records on the current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. Said Each Person Each Occurrence Aggregate Bodily Injury J $500,000.00 $1,000,000.00 $2,000,000.00 Property Damage - -- $1,000,000.00 $2,000,000.00 A combined single limit for Bodily Injury Liability and Property Damage Liability of $2,000,000.00 for each occurrence will be considered equivalent to the above minimum limits for Comprehensive General Liability. Property Damage Insurance shall cover full replacement value for damages to any property caused directly or indirectly by or from acts or activities of the Contractor or its sub - contractors or any person acting for the Contractor or under its control or direction. The Contractor shall procure and maintain, at its sole expense, and throughout the term of this Contract Agreement and any extension thereof, Public Liability and Property Damage Insurance coverage for owned and non -owned automotive equipment operated. Such coverage limits shall not be less than $1,000,000 combined single limit. Any deductibles or self- insured retention must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self- insured retention as respects the City, its officers, officials, employees and volunteers; or the contractor shall procure a bond guaranteeing payment of losses and related investigation, claim administration, and defense expenses. The Contractor shall also furnish the City with a certificate evidencing Worker's Compensation Insurance with limits as established by the State of California. The Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 7. The Contractor hereby agrees to provide and maintain in effect two (2) good and sufficient Surety Bonds for one hundred percent (100 %) each of the contract price. The bonds shall be a "Faithful Performance Bond" which shall guarantee the faithful performance of all work and a "Labor and Materials Payment Bond" which shall secure the payment of the claims of labor, mechanics, or materialmen for all work under the Contract pursuant to Section 3247 of the Civil Code. 8. The Contractor, the Contractor's heirs, executors, administrators, successors, or assigns guarantee that all work performed under this Contract fully meets the requirements thereof as to quality of workmanship and materials furnished. If any defects in materials or workmanship become evident within a period of one year from the date of the acceptance of the work by the City Council, the Contractor shall, at his or her own expense, make any repair(s) or replacement(s) necessary to restore the work to full compliance with the Plans and Specifications. 9. Contractor and owner do hereby acknowledge that this project will be partially or fully funded with Community Development Block Grant (CDBG) funds [24CFR 570] and is therefore subject to applicable Federal procurement, labor, environmental, equal opportunity, and other regulations. 10. Contractor shall maintain and keep records on the current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. Said AGREEMENT PROJECT NO. 4411 books and records shall be made available to the County, the City of Lake Elsinore, the State of California, the Federal government, and to any authorized representative thereof for the purposes of audit at all reasonable times and places. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration of the term of this Agreement. 11. Contractor shall comply with the Davis -Bacon Fair Labor Standards Act (40 USC a -276, a -5) and the implementation regulations thereof. Contractor shall comply with the U.S. Department of Housing and Urban Development's Federal Labor Standards Provisions (HUD 4010). Contractor acknowledges that the applicable wage Determination for this project is: General Decision Number: CA 140019 Modification Number: 1 Date:1 /10/14 12. Section 3 Compliance: The contractor hereby acknowledges that this federally- funded project is subject to Section 3 of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701 u and 24 CFR Part 1351 and agrees to the following: A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD - assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low- income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitment under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subiect to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) AGREEMENT PROJECT NO. 4411 with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24CFR Part 135. F. Noncompliance with HUD regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self- Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b). 13. Pursuant to California Public Contract Code Section 22300, the Contractor will be permitted the substitution of securities for any monies withheld by the City of Lake Elsinore to ensure performance under Contract. At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the City of Lake Elsinore, or with a state or federally chartered bank as the escrow agent, who shall pay such monies to the Contractor. Securities eligible for substitution under this section shall include those listed in Section 16430 of the Government Code, bank or savings and loan certificates of deposit, interest- bearing demand deposit accounts, and standby letters of credit. The Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any dividends or interest thereon. The Contractor shall give the City written notice within thirty (30) days after the Contract is awarded that it desires to substitute securities for money that would ordinarily be withheld. If the substituted securities are deposited into an escrow, the escrow shall be governed by a written escrow Contract Agreement in a form which is substantially similar to the Contract Agreement set forth in Section 22300, of the Public Contract Code. 14. The Contractor agrees to indemnify, defend, and save the City of Lake Elsinore, the County of Riverside (CDBG), its officers, agents, and employees harmless from any and all liability, claims, damages or injuries to any person, including injury to the Contractor's employees and all claims which arise from or are connected with the negligent performance of or failure to perform the work or other obligations of this Contract Agreement, or are caused or claimed to be caused by the negligent acts of the Contractor its officers, agents, employees, sub - contractors or suppliers, and all expenses of investigating and defending against the same; provided, however, that this indemnification and hold harmless shall not include any claims arising from the sole negligence or willful misconduct of the City, its officers, agents, or employees. The obligation to indemnify, defend and hold harmless set forth herein shall include, without limitation, any and all attorney's fees incurred by the party to be indemnified, defended, or held harmless, whether in a judicial or administrative action or in arbitration, and whether the issue is between the parties or involves one or more third parties. 15. The parties do for themselves, their heirs, executors, administrators, successors and assigns agree to the full performance of all of the provisions herein contained. The Contractor may not, either voluntarily or by action of law, assign any obligation assumed by the Contractor hereunder without prior written consent of the City. AGREEMENT PROJECT NO. 4411 16. Should either party bring any legal or equitable action for the purpose of protecting or enforcing its rights underthis Contract Agreement, the prevailing party in such action shall recover in addition to all other relief, its reasonable attorney's fees and court costs to be fixed by the court. In addition to the foregoing award of attorney's fees, the prevailing party shall be entitled to its attorneys' fees incurred in any postjudgement proceedings to enforce anyjudgments in connection with this Contract Agreement. The Provision is separate and several and shall survive the merge of this Provision into any judgement. 17. By my signature hereunder, as Contractor, I certify that 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. 18. The effective date of this Contract Agreement shall be the date of the Award of Contract by the City of Lake Elsinore. 19. Contractors are required by law to be licensed and regulated by the Contractors' State License Board. Any questions concerning a Contractor may be referred to the Registrar, Contractors' State License Board, 3132 Bradshaw Road, Sacramento, CA 95826. Mailing address: P.O. Box 26000, Sacramento, CA 95826. 20. PRE - CONSTRUCTION CONFERENCE After execution of the Contract Documents, the Contractor and all sub - contractors shall attend a pre - construction conference with representatives of the County of Riverside Economic Development Agency and Owner. The Conference will serve to acquaint the participants with the Federal Regulations and Labor Compliance requirements under which construction is to proceed (SIGNATURE PAGE FOLLOWS) AGREEMENT PROJECT NO. 4411 CITY OF LAKE ELSINORE, Municipal Corporation M Grant Yates, City Manager (Select only one please) DATE: INTERNAL USE ONLY ATTEST: City Clerk (only needed if Mayor signs) APPROVED AS TO LEGAL FORM: City Attorney Date RECOMMENDED FOR APPROVAL: Department Head (if contract exceeds $15,000) Date SIGNING INSTRUCTION TO THE CONTRACTOR: Contractor: Jerald Garcia License No./ Expiration Date: 866262 02/28/15 Federal I.D. No.: 030393008 Contractor: _FGS Paving Address: PO Box 532245 _San Diego, CA 92153 PRINT NAME: Jerald Garcia SIGNATURE: TITLE: DATE: Date PRINT NAME: SIGNATURE: TITLE: DATE: Date All signatures on the Contract Agreement on behalf of the Contractor must be acknowledged before a notary public. General Partners must sign on behalf of the partnership. Seal may be affixed hereto. ATTACHED AS PART OF THE AGREEMENT ARE THE FOLLOWING: 1. Federal Provisions and Requirements 2. Davis -Bacon Wage Determination, General Decision: CA 140019 Date: 1/10/2014 Equal Employment Opportunity Certification U.S. Department of Housing and Urban Development, Department of Veterans Affairs Excerpt From 41 CFR §60- 1.4(b) Office of Housing Federal Housing Commissioner The applicant hereby agrees that it will incorporate or cause to be (6) In the event of the contractor's noncompliance with the incorporated into any contract for construction work, or modification nondiscrimination clauses of this contract or with any of the said thereof, as defined in the regulations of the Secretary of Labor at 41 rules, regulations, or orders, this contract may be canceled, CFR Chapter 60, which is paid for in whole or in part with funds terminated, or suspended in whole or in part and the contractormay obtained from the Federal Government or borrowed on the credit of be declared ineligible for further Government contracts or federally the Federal Government pursuant to a grant, contract, loan insurance, assisted construction contracts in accordance with procedures or guarantee, or undertaken pursuant to any Federal program authorized in Executive Order 11246 of September 24, 1965, and involving such grant, contract, loan, insurance, or guarantee, the such other sanctions may be imposed and remedies invoked as following equal opportunity clause. provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise During the performance of this contract, the contractor agrees as provided by law. follows: (7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) (1) The contractor will not discriminate against any employee or through (7) in every subcontract orpurchase order unless exempted applicant for employment because of race, color, religion, sex, or by rules, regulations, or orders of the Secretary of Labor issued national origin. The contractor will take affirmative action to pursuant to section 204 of Executive Order 11246 of September 24, ensure that applicants are employed, and that employees are 1965, so that such provisions will be binding upon each treated during employment without regard to their race subcontractor or vendor. The contractor will take such action with religion, sex, or national origin, such action shall include, but not respect to any subcontract or purchase order as the administering be limited to the following: Employment, upgrading, demotion, or agency may direct as a means of enforcing such provisions, transfer; recruitment or recruitment advertising; layoff or including sanctions for noncompliance: Provided, however, that in termination; rates of pay or other forms of compensation; the the event a contractor becomes involved in, or is threatened with, selection for training, including apprenticeship. The contractor litigation with a subcontractor or vendor as a result of such direction agrees to post in conspicuous places, available to employees by the administering agency the contractor may request the United and applicants for employment, notices to be provided setting States to enter into such litigation to protect the interests of the forth the provisions of this nondiscrimination clause. United States. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf ofthe contractor, state thatall The applicant further agrees that it will be bound by the above equal qualified applicants will receive consideration for employment opportunity clause with respect to its own employment practices when it without regard to race, color, religion, sex, or national origin. participates in federally assisted construction work: (3) The contractorwill send to each labor union or representative of workers with which it has a collective bargaining agreement or Provided, That if the applicant so participating- is a State or local other contract or understanding, a notice to be provided advising government, the above equal opportunity clause is not applicable to any the said labor union or workers' representatives of the agency, instrumentality orsubdivision of such governmentwhich does not contractor's commitments under this section, and shall post participate in work on or under the contract. copies of the notice in conspicuous places available to employees and applicants for employment. The applicant agrees that it will assist and cooperate actively with the (4) The contractorwill complywith all provisions of Executive Order administering agency and the Secretary of Labor in obtaining the 11246 of September 24, 1965, and of the rules, regulations, and compliance of contractors and subcontractors with the equal opportunity orders of the Secretary of Labor, or pursuant thereto, and will clause and the rules, regulations, and relevant order of the Secretary of permit access to its books, records, and accounts by the Labor, that it will furnish the administering agency and the Secretary of administering agency and the Secretary of Labor for purposes of Labor such information as they may require for the supervision of such investigation to ascertain compliance with such rules, compliance, and thatwill otherwise assistthe administering agency in the regulations, and relevant orders of the Secretary of Labor. discharge of the agency's primary responsibility for securing compliance. (5) The contractorwill furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, The applicant further agrees that it will refrain from entering into any regulations, and orders of the Secretary of Labor, or pursuant contract or contract modification subject to Executive Order 11246 of thereto, and will permit access to its books, records, and September 24, 1965, with a contractor debarred from, or who has not accounts bythe administering agencyand the Secretaryof Labor demonstrated eligibilityfor, Government contracts and Federally- assisted for purposes of investigation to ascertain compliance with such construction contracts pursuant to the Executive order and will carry out rules, regulations, and orders. such sanctions and penalties for violation of the equal opportunity clause as may be imposed Firm Name and Address By FGS Paving PO Box 532245 San Diego, CA 92153 Title upon contractors and subcontractors by the administering agency or (5) The contractor will furnish all information and reports required by the Secretary of Labor pursuant to Part II, Subpart D of the Executive Executive Order 10925 of March 6, 1961, as amended, and by the order. In addition the applicant agrees that if it fails or refuses to regulations and orders of the said Committee or pursuant thereto and comply with these undertakings, the administering agency may take will permit access to his books, records, and accounts by HUD and the any or all of the following actions: Cancel, terminate, or suspend in Committee for purposes of investigation to ascertain compliance with whole or in part this grant (Contract, loan, insurance, guarantee); such regulations, and orders. refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. Excerpt from HUD Regulations 200.410Definition of term "applicant ". (a) In multifamily housing transactions where controls over the mortgagor are exercised by the Commissioner either through the ownership of corporate stock or under the provisions of a regulatory agreement, the term "applicant" as used in this subpart shall mean the mortgagor. (b) In transactions other than those specified in paragraph (a) of this section, the term "applicant" as used in this subpart shall mean the builder, dealer or contractor performing the construction, repair or rehabilitation work for the mortgagor or other borrower. 200.420Equal Opportunity Clause to be included in contracts and subcontracts. (a) The following equal opportunity clause shall be included in each contract and subcontract which is not exempt: During the performance of this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor ag rees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of the nondiscrimination clause. (2) The contractor will in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided, advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notices in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 10925 of March 6, 1961, as amended, and of the regulations, and relevant orders of the President's Committee on Equal Employment Opportunity created thereby. (6) In the event of the contractor's non - compliance with the nondiscrimination clause of this contract or with any of the said regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or Federally- assisted construction contracts in accordance with procedures authorized in Executive Order 10925 of March 6, 1961, as amended, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by regulations, or order of the President's Committee on Equal Employment Opportunity, or as otherwise provided by law. (7) The contractor will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by regulations, or orders of the President's Committee on Equal Employment Opportunity issued pursuant to Section 303 of Executive Order 10925 of March 6, 1961, as amended, so that such provisions will be binding upon each subcontractor or vender. The contractor will take such action with respect to any subcontract or purchase orders as HUD may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vender as a result of such direction by HUD, the contractor may request the United States to enter into such litigation to protect the interests of the United States. 200.425Modifcaiton in and exemptions from the regulations in this subpart. (a) The following transactions and contracts are exempt from the regulations in this subpart: (1) Loans, mortgages, contracts and subcontract not exceeding $10,000. (2) Contract and subcontracts not exceeding $100,000 for standard commercial supplies or raw material; (3) Contracts and subcontracts under which work is to be or has been performed outside the United States and where no recruitment of workers within the United States is involved. To the extent that work pursuant to such contracts is done within the United States, the equal opportunity clause shall be applicable; (4) Contracts for the sale of Government property where no appreciable amount of work is involved; and (5) Contracts and subcontracts for an indefinite quantity which are not to extend for more than one year if the purchaser determines that the amounts to be ordered under any such contract or subcontract are not reasonably expected to exceed $100, 000 in the case of contracts or subcontracts for standard commercial supplies and raw materials, or $10,000 in the case of all other contracts and subcontracts. Form HUD -2992 (3/98)