HomeMy WebLinkAboutItem No. 10 - CSA Unique Builders Lake Community Center CIP Z20021City Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 21-430
Agenda Date: 12/14/2021 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 10)
Construction Agreement with Unique Builders of California for the Lake Community Center
Rehabilitation Project (CIP Project # Z20021), CDBG 1.LE.73-20, 1.LE.76.21
1.Award a Construction Agreement to Unique Builders of California for Lake Community Center
Rehabilitation Project (CIP Project # Z20021);
2.Approve and authorize the City Manager to execute the Agreement in the not to exceed amount of
Five Hundred Forty-Seven Thousand Five Hundred Fifty Dollars and no cents ($547,550.00 ) with
Unique Builders of California in the form attached and in such final form as approved by the City
Attorney; and
3.Authorize the City Manager to execute change orders not to exceed a 10% contingency amount of
$54,755.00 for construction uncertainties and adjustments.
Page 1 City of Lake Elsinore Printed on 12/14/2021
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Brendan Rafferty, Fiscal Officer
Date: December 14, 2021
Subject: Construction Agreement with Unique Builders of California for the Lake
Community Center Rehabilitation Project (CIP Project # Z20021), CDBG
#1.LE.73-20 and 1.LE.76-21.
Recommendations
1. Award a Construction Agreement to Unique Builders of California for Lake Community Center
Rehabilitation Project (CIP Project # Z20021).
2. Approve and authorize the City Manager to execute the Agreement in the not to exceed the
amount of Five Hundred Forty-Seven Thousand Five Hundred Fifty Dollars and no cents
($547,550.00) with Unique Builders of California in the form attached and in such final form as
approved by the City Attorney.
3. Authorize the City Manager to execute change orders not to exceed a 10% contingency amount
of $54,755.00 for construction uncertainties and adjustments.
Background
Construction bid documents were prepared and the project was advertised for bid per the
requirements outlined in the California Public Contract Code. On September 8, 2021, the City
posted on PlanetBids the notice inviting bids for the Lake Community Center Rehabilitation
Project (CIP Project #Z20021). A mandatory job walk at the project site was held at 10:00 A.M.
on Wednesday, October 6, 2021, and seven potential bidders attended.
Five bids were received on or before the deadline of 2:00 p.m. on Wednesday, October 21, 2021.
These bids were publicly opened, examined, and declared in City Hall.
Discussion
The City is rehabilitating the Lake Community Center located at 310 W. Graham Ave. In short,
some of the major elements of the remodeling project will include adding office spaces upstairs,
adding a front entry with a service counter, a bathroom, and interior walls to make improved use
of the interior space. Also, the project will include an ADA-accessible sidewalk leading up to the
Lake Community Center Rehabilitation Project (CIP PROJECT # Z20021)
December 14, 2021
Page 2
building from the street. The exterior windows will be replaced with new storefront windows. The
overall essentials in this scope of work are summarized below as general requirements:
General Requirements:
Demolition Framing
Windows and Doors Built-up Roofing Sheet Metal Flashing and Trim
Painting Flooring
Concrete Cement Plaster
Ceiling and lighting Cabinets
Interior and Exterior Finishes Aluminum Trellis
The notice inviting bid produced five bid submittals and below are the biding companies and
amounts for each bid:
Name of Company Bid Amount
Unique Builders of California $547,550.00
Corner Key Stone Construction Company $770,100.00
Genesis Builders $776,000.00
R Dependable Construction $883,000.00
Horizons Construction $1,215,276.00
Following the approval of this agenda item Rehabilitation of the Lake Community Center will
begin. Staff has reviewed and verified the contractor has a valid license and has provided
sufficient references.
Fiscal Impact
Lake Community Center Rehabilitation Project is included in the Fiscal Year 21/22 – 26/27
Capital Improvement Plan (CIP) budget
Exhibits
A – Agreement
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Agreement No.Click or tap here to enter text.
AGREEMENT FOR PUBLIC WORKS CONSTRUCTION
Unique Builders of CA, Inc.
For the
CIP PROJECT NO. Z20021
Lake Community Center Rehabilitation
This Agreement for Public Works Construction (“Agreement”) is made and entered into as of
December 14, 2021, by and between the City of Lake Elsinore, a municipal corporation (‘‘City”) and
Unique Builders of CA, Inc. (“Contractor”).
The City and Contractor, in consideration of the mutual promises and covenants set forth
herein, agree as follows:
1. The Project and Project Documents. Contractor agrees to construct the following public
improvements (“work”) identified as:
CIP PROJECT NO. Z20021
The City-approved plans for the construction of the Project, which are incorporated herein by
reference and prepared by STK Architecture are identified as:
Lake Community Center Renovation
The Project Documents include this Agreement and all of the following: (1) the Notice Inviting
Bids, Instructions to Bidders, Bid Documents including Bidder’s Proposal as submitted by the Contractor,
Contract Documents, General Specifications, Special Provisions, and all attachments and appendices;
(2) everything referenced in such documents, such as specifications, details, standard plans or drawings
and appendices, including all applicable State and Federal requirements; (3) all required bonds,
insurance certificates, permits, notices, and affidavits; and (4) any and all addenda or supplemental
agreements clarifying, amending or extending the work contemplated as may be required to insure
completion in an acceptable manner. All of the provisions of the above-listed documents are made a
part of this Agreement as though fully set forth herein.
2. Compensation.
a. For and in consideration of the payments and agreements to be made and performed
by City, Contractor agrees to construct the Project, including furnishing all materials and performing all
work required for the Project, and to fulfill all other obligations as set forth in the Bidder’s Proposal, such
contract price being Five Hundred Forty-Seven Thousand Five Hundred Fifty Dollars and no cents
($547,550.00).
b. City hereby promises and agrees to employ, and does hereby employ, Contractor to
provide the materials, do the work, and fulfill the obligations according to the terms and conditions herein
contained and referred to, for the prices set forth, and hereby contracts to pay the same at the time, in
the manner, and upon the conditions set forth in the Project Documents.
c. Contractor agrees to receive and accept the prices set forth in the Bidder’s Proposal
as full compensation for furnishing all materials, performing all work, and fulfilling all obligations
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hereunder. Such compensation shall cover all expenses, losses, damages, and consequences arising
out of the nature of work during its progress or prior to its acceptance including those for well and
faithfully completing the work and the whole thereof in the manner and time specified in the Project
Documents; and also including those arising from actions of the elements, unforeseen difficulties or
obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and
all other unknowns or risks of any description connected with the work.
3. Completion of Work.
a. Contractor shall perform all work within Sixty-Five (65) working days from the date of
commencement specified in the Notice to Proceed and shall complete all work within Sixty-Five (65)
working days, and shall provide, furnish and pay for all the labor, materials, necessary tools, expendable
equipment, and all taxes, utility and transportation services required for construction of the Project.
b. All work shall be performed and completed in a good workmanlike manner in strict
accordance with the drawings, specifications and all provisions of this Agreement as hereinabove
defined and in accordance with applicable laws, codes, regulations, ordinances and any other legal
requirements governing the Project.
c. Contractor shall not be excused with respect to the failure to so comply by any act or
omission of the City, the Director of Public Works, the City Engineer, a City inspector, or a representative
of any of them, unless such act or omission actually prevents the Contractor from fully complying with
the requirements of the Project Documents, and unless the Contractor protests at the time of such
alleged prevention that the act or omission is preventing the Contractor from fully complying with the
Project Documents. Such protest shall not be effective unless reduced to writing and filed with the City
within three (3) working days of the date of occurrence of the act or omission preventing the Contractor
from fully complying with the Project Documents.
d. City and Contractor recognize that time is of the essence in the performance of this
Agreement and further agree that if the work called for under the Agreement is not completed within the
time hereinabove specified, 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. It is, therefore, agreed that such damages shall be presumed
to be in the amount of Fifteen Hundred Dollars ($1,500) per calendar day, and that the Contractor will
pay to the City, or City may retain from amounts otherwise payable to Contractor, such amount for each
calendar day by which the Contractor fails to complete the work, including corrective items of work,
under this Agreement within the time hereinabove specified and as adjusted by any changes to the work.
4. Changes to Work. City and Contractor agree that the City may make changes to the work, or
suspend the work, and no matter how many changes, such changes or suspensions are within the
contemplation of the Contractor and City and will not be a basis for a compensable delay claim against
the City nor be the basis for a liquidated damage claims against the Contractor.
Any change to the work shall be by way of a written instrument (“change order”) signed by the
City and the Contractor, stating their agreement to the following:
a. The scope of the change in the work;
b. The amount of the adjustment to the contract price; and
c. The extent of the adjustment to the Schedule of Performance.
The Director of Public Works is authorized to sign any change order provided that sufficient
contingency funds are available in the City’s approved budget for the Project. All change in the work
authorized by the change order shall be performed under the applicable conditions of the Project
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Documents. City and Contractor shall negotiate in good faith and as expeditiously as possible the
appropriate adjustments for such changes.
5. Special Federal Requirements
a. Contractor and Owner do hereby acknowledge that this project will be partially or fully
funded with Community Development Block Grant (CDBG) funds [24 CFR 570] and is
therefore subject to applicable Federal procurement, labor, environmental, equal
opportunity, and other regulations.
b. Contractor shall maintain and keep books and records on a current basis, recording all
transactions pertaining to this agreement in a form in accordance with generally
acceptable accounting principles. Said books and records shall be made available to the
County, 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.
c. 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).
d. Contractor acknowledges that work under this contract is subject to the payment of
prevailing wages pursuant to Section 1770 and 1773 et seq. of the Labor Code of the
State of California, the Director of Industrial Relations (State Prevailing Wages), and the
U.S. Department of Housing and Urban Development’s Federal Labor Standards
Provisions (Davis-Bacon Act Prevailing Wages). The Contractor to whom the contract is
awarded, and all subcontractors under him, shall pay the higher of the Federal or State
prevailing wage rate for any given classification employed in the performance of this
contract.
e. Contractor acknowledges that the applicable Wage Determination for this project is:
General Decision Number: CA20210025
Modification Number: 11
Date: 10/1/21
6. 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. 1701u and 24
CFR Part 135] 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. 1701u
(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.
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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 commitments 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 subject 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) 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 24 CFR Part 135.
f. Noncompliance with HUD's 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 Section7(b).
7. Additional Federal Requirements
Whereas, the work under this Agreement is subject to applicable Federal, State, and local laws and
regulations, including but not limited to the regulations pertaining to the Community Development Block
Grant program (24 CFR Part 570) and 2 CFR Part 200. Contractor, sub-contractors, Consultants, and
sub-consultants agree to comply with, and are subject to, all applicable requirements as follows:
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a. Equal Employment Opportunity - Compliance with Executive Order 11246 of September
24, 1965, entitled "Equal Employment Opportunity", as amended by Executive Order
11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41
CFR chapter 60). The Contractor/Consultant will not discriminate against any employee
or applicant for employment because of race, color, religion, sex, or national origin.
Contractor/Consultant will ensure that all qualified applicants will receive consideration
for employment without regard to race, color, religion, sex or national origin. The
Contractor/Consultant will take affirmative action to ensure that applicants are employed,
and the employees are treated during employment, without regard to their race color,
religion, sex, or national origin. Such actions shall include, but are not limited to, the
following: employment, up-grading, demotion, or transfer; recruitment or recruitment
advertising; rates of pay or other forms of compensation; and selection for training,
including apprenticeship. The Contractor/Consultant agrees to post in a conspicuous
place, available to employees and applicants for employment, notices to be provided by
the County setting forth the provisions of this non-discriminating clause.
b. Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C. 276c: All contracts and
subgrants in excess of $2,000 for construction or repair awarded by recipients and
subrecipients shall include a provision for compliance with the Copeland “Anti-Kickback”
Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part
3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole
or in Part by Loans or Grants from the United States”). The Act provides that each
contractor or subrecipient shall be prohibited from inducing, by any means, any person
employed in the construction, completion, or repair of public work, to give up any part of
the compensation to which he is otherwise entitled. The recipient shall report all
suspected or reported violations to HUD.
c. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7: When required by Federal
program legislation, all construction contracts awarded by the recipients and
subrecipients of more than $2000 shall include a provision for compliance with the Davis-
Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor
regulations (29 CFR part 5, “Labor Standards Provisions Applicable to Contracts
Governing Federally Financed and Assisted Construction”). Under this Act, contractors
shall be required to pay wages to laborers and mechanics at a rate not less than the
minimum wages specified in a wage determination made by the Secretary of Labor. In
addition, contractors shall be required to pay wages not less than once a week. The
recipient shall place a copy of the current prevailing wage determination issued by the
Department of Labor in each solicitation and the award of a contract shall be conditioned
upon the acceptance of the wage determination. The recipient shall report all suspected
or reported violations to HUD.
d. Contract Work Hours and Safety Standards Act (40 U.S.C. 327 through 333: Where
applicable, all contracts awarded by recipients in excess of $2000 for construction
contracts and in excess of $2500 for other contracts that involve the employment of
mechanics or laborers shall include a provision for compliance with Sections 102 and 107
of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327–333), as
supplemented by Department of Labor regulations (29 CFR part 5). Under Section 102
of the Act, each contractor shall be required to compute the wages of every mechanic
and laborer on the basis of a standard workweek of 40 hours. Work in excess of the
standard workweek is permissible provided that the worker is compensated at a rate of
not less than 1 1/2 times the basic rate of pay for all hours worked in excess of 40 hours
in the workweek. Section 107 of the Act is applicable to construction work and provides
that no laborer or mechanic shall be required to work in surroundings or under working
conditions which are unsanitary, hazardous or dangerous. These requirements do not
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apply to the purchases of supplies or materials or articles ordinarily available on the open
market, or contracts for transportation or transmission of intelligence.
e. Rights to Inventions Made Under a Contract or Agreement— Contracts or agreements
for the performance of experimental, developmental, or research work shall provide for
the rights of the Federal Government and the recipient in any resulting invention in
accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants, Contracts and Cooperative
Agreements,” and any implementing regulations issued by HUD.
f. Rights to Data and Copyrights – Contractors and consultants agree to comply with all
applicable provisions pertaining to the use of data and copyrights pursuant to 48 CFR
Part 27.4, Federal Acquisition Regulations (FAR).
g. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.), as amended Contracts and subgrants of amounts in excess of
$100,000 shall contain a provision that requires the recipient to agree to comply with all
applicable standards, orders or regulations issued pursuant to the Clean Air Act (42
U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33
U.S.C. 1251 et seq.). Violations shall be reported to HUD and the Regional Office of the
Environmental Protection Agency (EPA).
h. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)— Contractors who apply or bid for an
award of $100,000 or more shall file the required certification. Each tier certifies to the
tier above that it will not and has not used Federal appropriated funds to pay any person
or organization for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, officer or employee of Congress, or an employee of a
member of Congress in connection with obtaining any Federal contract, grant or any other
award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-
Federal funds that takes place in connection with obtaining any Federal award. Such
disclosures are forwarded from tier to tier up to the recipient.
i. Debarment and Suspension (E.O.s 12549 and 12689)—No contract shall be made to
parties listed on the General Services Administration's List of Parties Excluded from
Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and
12689, “Debarment and Suspension,” as set forth at 24 CFR part 24. This list contains
the names of parties debarred, suspended, or otherwise excluded by agencies, and
contractors declared ineligible under statutory or regulatory authority other than E.O.
12549. Contractors with awards that exceed the small purchase threshold shall provide
the required certification regarding its exclusion status and that of its principal employees.
j. Drug-Free Workplace Requirements—The Drug-Free Workplace Act of 1988 (42
U.S.C. 701) requires grantees (including individuals) of federal agencies, as a prior
condition of being awarded a grant, to certify that they will provide drug-free workplaces.
Each potential recipient must certify that it will comply with drug-free workplace
requirements in accordance with the Act and with HUD's rules at 24 CFR part 24, subpart
F.
k. Access to Records and Records Retention: The Consultant or Contractor, and any sub-
consultants or sub-contractors, shall allow all duly authorized Federal, State, and/or
County officials or authorized representatives access to the work area, as well as all
books, documents, materials, papers, and records of the Consultant or Contractor, and
any sub-consultants or sub-contractors, that are directly pertinent to a specific program
for the purpose of making audits, examinations, excerpts, and transcriptions. The
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Consultant or Contractor, and any sub-consultants or sub-contractors, further agree to
maintain and keep such books, documents, materials, papers, and records, on a current
basis, recording all transactions pertaining to this agreement in a form in accordance with
generally acceptable accounting principles. 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.
l. Federal Employee Benefit Clause: No member of or delegate to the congress of the
United States, and no Resident Commissioner shall be admitted to any share or part of
this agreement or to any benefit to arise from the same.
m. Energy Efficiency: Mandatory standards and policies relating to energy efficiency which
are contained in the State energy conservation plan issued in compliance with the Energy
Policy and Conservation Act (Pub. L. 94A 163, 89 Stat. 871).
n. Procurement of Recovered Materials (2 CFR 200.322.) A non-Federal entity that is a
state agency or agency of a political subdivision of a state and its contractors must comply
with section 6002 of the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act. The requirements of Section 6002 include procuring
only items designated in guidelines of the Environmental Protection Agency (EPA) at 40
CFR part 247 that contain the highest percentage of recovered materials practicable,
consistent with maintaining a satisfactory level of competition, where the purchase price
of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal
year exceeded $10,000; procuring solid waste management services in a manner that
maximizes energy and resource recovery; and establishing an affirmative procurement
program for procurement of recovered materials identified in the EPA guidelines.
8. Bonds. Contractor shall provide, before commencing work, a Faithful Performance Bond and
a Labor and Material Bond, each for one hundred percent (100%) of the contract price in the form that
complies with the Project Documents and is satisfactory to the City Attorney.
9. Non-Assignability. Neither this Agreement nor any rights, title, interest, duties or obligations
under this Agreement may be assigned, transferred, conveyed or otherwise disposed of by Contractor
without the prior written consent of City.
10. Licenses. Contractor represents and warrants to City that it holds the contractor’s license
or licenses set forth in the Project Documents, is registered with the Department of Industrial Relations
pursuant to Labor Code Section 1725.5 as of March 1, 2015, and holds such other licenses, permits,
qualifications, insurance and approvals of whatsoever nature which are legally required of Contractor.
Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in
effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and
approvals which are legally required of Contractor to practice its profession. Contractor shall maintain a
City of Lake Elsinore business license.
11. Indemnity. Contractor shall indemnify, defend, and hold harmless the City and Riverside
County and its officials, officers, employees, agents, and volunteers from and against any and all losses,
liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily
injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or
ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or
omissions of Contractor or its employees, subcontractors, or agents, by acts for which they could be
held strictly liable, or by the quality or character of their work. The foregoing obligation of Contractor
shall not apply when (1) the injury, loss of life, damage to property, or violation
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of law arises from the sole negligence or willful misconduct of the City or its officers, employees, agents,
or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have
contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood
that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in
Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and
endorsements required under this Agreement does not relieve Contractor from liability under this
indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to
any damages or claims for damages whether or not such insurance policies shall have been determined
to apply. By execution of this Agreement, Contractor acknowledges and agrees to the provisions of this
Section and that it is a material element of consideration.
12. Insurance Requirements.
a. Insurance. Contractor, at Contractor’s own cost and expense, shall procure and
maintain, for the duration of the Agreement, unless modified by the City’s Risk Manager, the following
insurance policies.
i. Workers’ Compensation Coverage. Contractor shall maintain Workers’
Compensation Insurance and Employer’s Liability Insurance for his/her employees in
accordance with the laws of the State of California. In addition, Contractor shall require each
subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability
Insurance in accordance with the laws of the State of California for all of the subcontractor’s
employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies
must be received by the City at least thirty (30) days prior to such change. The insurer shall agree
to waive all rights of subrogation against City, its officers, agents, employees and volunteers for
losses arising from work performed by Contractor for City. In the event that Contractor is exempt
from Worker’s Compensation Insurance and Employer’s Liability Insurance for his/her
employees in accordance with the laws of the State of California, Contractor shall submit to the
City a Certificate of Exemption from Workers Compensation Insurance in a form approved by the
City Attorney.
ii. General Liability Coverage. Contractor shall maintain commercial general
liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for
bodily injury, personal injury and property damage. If a commercial general liability insurance
form or other form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to the work to be performed under this Agreement or the general aggregate
limit shall be at least twice the required occurrence limit. Required commercial general liability
coverage shall be at least as broad as Insurance Services Office Commercial General Liability
occurrence form CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed.
1/73) covering comprehensive General Liability and Insurance Services Office form number GL
0404 covering Broad Form Comprehensive General Liability. No endorsement may be attached
limiting the coverage.
iii. Automobile Liability Coverage. Contractor shall maintain automobile liability
insurance covering bodily injury and property damage for all activities of the Contractor arising
out of or in connection with the work to be performed under this Agreement, including coverage
for owned, hired and non-owned vehicles, in an amount of not less than one million dollars
($1,000,000) combined single limit for each occurrence. Automobile liability coverage must be at
least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code
1 (“any auto”). No endorsement may be attached limiting the coverage.
iv. Professional Liability Coverage [if applicable]. Contractor shall maintain
professional errors and omissions liability insurance appropriate for Contractor’s profession for
protection against claims alleging negligent acts, errors or omissions which may arise from
Contractor’s services under this Agreement, whether such services are provided by the
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Contractor or by its employees, subcontractors, or sub consultants. The amount of this insurance
shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis,
or a combined single limit per occurrence basis.
b. Endorsements. Each general liability and automobile liability insurance policy shall be
with insurers possessing a Best’s rating of no less than A: VII and shall be endorsed with the
following specific language:
i. The City and Riverside County, its elected or appointed officers, officials,
employees, agents and volunteers are to be covered as additional insured with respect to liability
arising out of work performed by or on behalf of the Contractor, including materials, parts or
equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects the City, its
elected or appointed officers, officials, employees, agents and volunteers. Any insurance
maintained by the City, including any self-insured retention the City may have, shall be
considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as though a
separate policy had been written for each, except with respect to the limits of liability of the
insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or
appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the City, its elected or appointed officers, officials, employees, agents or
volunteers.
vi. The insurance provided by this Policy shall not be suspended, voided,
canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been
received by the City.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City. At the City’s option, Contractor shall demonstrate financial
capability for payment of such deductibles or self-insured retentions.
d. Certificates of Insurance. Contractor shall provide certificates of insurance with original
endorsements to City as evidence of the insurance coverage required herein. Certificates of such
insurance shall be filed with the City on or before commencement of performance of this Agreement.
Current certification of insurance shall be kept on file with the City at all times during the term of this
Agreement.
13. Notices. Any notice required to be given under this Agreement shall be in writing and either
served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party
at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of
mailing if mailed as provided in this section.
14. If to City: City of Lake Elsinore with a copy to: City of Lake Elsinore
Attn: City Manager Attn: City Clerk
130 South Main Street 130 South Main Street
Lake Elsinore, CA 92530 Lake Elsinore, CA 92530
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to Contractor: Unique Builders of CA, Inc.
Attn: David Carter
33175 Temecula Parkway, Suite A747
Temecula, CA 92992
15. Entire Agreement. This Agreement constitutes the complete and exclusive statement of
agreement between the City and Contractor. All prior written and oral communications, including
correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.
16. Amendments. This Agreement may be modified or amended only by a written document
executed by both Contractor and City and approved as to form by the City Attorney.
17. Assignment and Subcontracting. Contractor shall be fully responsible to City for all acts or
omissions of any subcontractors. Assignments of any or all rights, duties or obligations of the Contractor
under this Agreement will be permitted only with the express consent of the City. Nothing in this
Agreement shall create any contractual relationship between City and any subcontractor nor shall it
create any obligation on the part of the City to pay or to see to the payment of any monies due to any
such subcontractor other than as otherwise is required by law.
18. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing
waiver of a subsequent breach of the same or any other provision under this Agreement.
19. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall
continue in full force and effect.
20. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by
the laws of the State of California and any action brought relating to this Agreement shall be held
exclusively in a state court in the County of Riverside.
21. Litigation Expenses and Attorneys’ Fees. If either party to this Agreement commences any
legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to
recover its reasonable litigation expenses, including court costs, expert witness fees, discovery
expenses, and attorneys’ fees.
22. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising
out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree
upon the mediator and share the costs of mediation equally. If the parties are unable to agree upon a
mediator, the dispute shall be submitted to JAMS or its successor in interest. JAMS shall provide the
parties with the names of five qualified mediators. Each party shall have the option to strike two of the
five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the
dispute remains unresolved after mediation, either party may commence litigation.
23. Authority to Enter Agreement and Administration. Contractor has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each party
warrants that the individuals who have signed this Agreement have the legal power, right, and authority
to make this Agreement and to bind each respective party. The City Manager is authorized to enter into
an amendment or otherwise take action on behalf of the City to make the following modifications to the
Agreement: (a) a name change; (b) grant extensions of time; (c) non-monetary changes in the scope of
services; and/or (d) suspend or terminate the Agreement. The Director of Public Works shall act as the
Project administrator on behalf of the City.
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24. Prohibited Interests. 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 Agreement, no member, officer or employee of City,
during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain
any present or anticipated material benefit arising therefrom.
25. Equal Opportunity Employment. Contractor represents that it is an equal opportunity
employer and it shall not discriminate against any subcontractor, employee or applicant for employment
because of race, religion, color, national origin, handicap, ancestry, sex or age. 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.
26. Prevailing Wages.
a. Contractor and all subcontractors shall adhere to the general prevailing rate of per
diem wages as determined and as published by the State Director of the Department of Industrial
Relations pursuant to Labor Code Sections 1770, 1773, and 1773.2. Copies of these rates and the latest
revisions thereto are on file in the office of the City Clerk of the City of Lake Elsinore and are available
for review upon request.
b. Contractor’s attention is directed to the provisions of Labor Code Sections 1774, 1775,
1776, 1777.5 and 1777.6. Contractor shall comply with the provisions of these Sections. The statutory
provisions for penalties for failure to comply with the State’s wage and the hours laws will be enforced.
c. Labor Code Sections 1774 and 1775 require the Contractor and all subcontractors to
pay not less than the prevailing wage rates to all workmen employed in the execution of the contract
and specify forfeitures and penalties for failure to do so. The minimum wages to be paid are those
determined by the State Director of the Department of Industrial Relations. Labor Code Section 1776
requires the Contractor and all subcontractors to keep accurate payroll records, specifies the contents
thereof, their inspection and duplication procedures and certain notices required of the Contractor
pertaining to their location. The statutory penalties for failure to pay prevailing wages will be enforced. If
the Project has been awarded to Contractor on or after April 1, 2015, Contractor and its subcontractors
must furnish electronic certified payroll records to the Labor Commissioner. Beginning January 1, 2016,
Contractor and its subcontractors must furnish electronic certified payroll records to the Labor
Commissioner without regard to when the Project was awarded to Contractor.
d. Labor Code Section 1777.5 requires Contractor or subcontractor employing
tradesmen in any apprenticeable occupation to apply to the Joint Apprenticeship Committee nearest the
site of the public works project, which administers the apprenticeship program in that trade for a
certificate of approval. The certificate will also fix the ratio of apprentices to journeymen to be used in
the performance of the Agreement. The Contractor is required to make contributions to funds established
for the administration of apprenticeship programs if the Contractor employs registered apprentices or
journeymen in any apprenticeable trade and if other contractors on the public works site are making
such contributions. Information relative to apprenticeship standards, contributions, wage schedules and
other requirements may be obtained from the State Director of Industrial Relations or from the Division
of Apprenticeship Standards. Labor Code Section 1777.6 provides that it shall be unlawful to refuse to
accept otherwise qualified employees as registered apprentices solely on the grounds of race, religious
creed, color, national origin, ancestry, sex, or age.
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1810.
e. Eight hours labor constitutes a legal day’s work, as set forth in Labor Code Section
27. Execution. This Agreement may be executed in several counterparts, each of which shall
constitute one and the same instrument and shall become binding upon the parties when at least one
copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be
necessary to produce or account for more than one such counterpart.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
Director of Administrative Services
“CONTRACTOR”
Unique Builders of CA, Inc.
By: David Carter
Its: Secretary