The URL can be used to link to this page

Home My WebLink AboutItem No. 16 Corner Keystone Construction Corp LE Neighborhood CenterCity Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 19-151 Agenda Date: 5/14/2019 Status: PassedVersion: 1 File Type: Council Consent Calendar In Control: City Council / Successor Agency Agenda Number: 16) Construction Contract Award to Corner Keystone Construction Corporation for the Lake Elsinore Neighborhood Center Project #Z20015 1. Award a Construction Agreement to Corner Keystone Construction Corporation for the Remodel Construction Work at the Lake Elsinore Neighborhood Center (CIP PROJECT #Z20015); and, 2. Approve and authorize the City Manager to execute the Agreement in the not to exceed amount of $377,095.06 with Corner Keystone Construction Corporation 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 percent contingency amount of $37,710.00 for construction uncertainties and adjustments; and, 4. Rescind award to IBuild Spectrum since bid was non -responsive as it did not include all required Federal forms. Page 1 City of Lake Elsinore Printed on 5/9/2023 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by:Jason Simpson, Assistant City Manager Date:May 14,2019 Subject:Construction Agreement to Corner Keystone Construction Corporation for the Remodel Construction Work at the Lake Elsinore Neighborhood Center (CIP PROJECT #Z20015). Recommendations 1. Award a Construction Agreement to Corner Keystone Construction Corporation for the Remodel Construction Work at the Lake Elsinore Neighborhood Center (CIP PROJECT #Z20015). 2. Approve and authorize the City Manager to execute the Agreement in the not to exceed amount of $377,095.06 with Corner Keystone Construction Corporation 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 $37,710 for construction uncertainties and adjustments. Background Construction bid documents were prepared and the project was advertised for bid in accordance with the requirements set forth in the California Public Contract Code. On January 16, 2019, the City posted on PlanetBids the Notice Inviting Bid for the Lake Elsinore Neighborhood Center Remodel (CIP PROJECT #Z20015).A non-mandatory job-walk at the project site was held at 10:00 A.M. on Tuesday, February 14, 2019 and seven potential bidders attended. Twelve bids were received on or before the deadline of 2:00 p.m. on Monday February 25, 2019. These bids were publicly opened, examined and declared in City Hall. On March 12, 2019, a contract for the project was awarded to iBuild Spectrum. That contract was subsequently terminated by mutual agreement. Discussion The City of Lake Elsinore is renovating the Neighborhood Center at 117 South Langstaff Street. The project involves conversion of the existing vacant Lake Elsinore Sheriff’s Station parcel for future utilization as a Neighborhood Center. In short, the major elements of the remodel project will include adding a bathroom, and interior walls to make improved use of the interior space Lake Elsinore Neighborhood Center Remodel April23, 2019 Page 2 and replacing all windows, doors and flooring. Also,the project will include an ADA accessible sidewalk leading up to the building from the street. The purpose of this proposal is to seek a contractor for the remodeling construction of the Neighborhood Center project according to plans contained in the notice inviting bids. In this scope of work thecontractor will furnish materials, labor and equipment to complete the job and deliver the project less the electrical and heating and conditioning which will be performed under separate contract by different contractors. The specific elements of this contract are listed below: General Requirements: Demolition Framing Plumbing Windows and Doors Painting Flooring Concrete / Asphalt Excavation (Fill and Backfill) Sheet Metal Flashing and Trim Mortar and Masonry Grout Bathroom Furnishes and Fixture Ceiling Interior and Exterior Miscellaneous The Notice Inviting Bid produced the following twelve bid submittals: Name of Company Bid Amount iBuild Spectrum –Terminated by Mutual Agreement $340,000.00 Corner Keystone Construction $377,095.06 Leonida Builders $387,200.00 St George Groupe –Non-responsive $427,465.00 Maples and Associates $462,500.00 Otero Construction Inc.465,050.00 Golden Gate Construction $494,289.00 R Dependable Construction Inc. –Non-responsive $496,000.00 New Millennium $498,956.00 Horizon Construction $529,787.00 Sudweeks Construction $536,383.00 Reed Family Enterprises $620,000.00 Lake Elsinore Neighborhood Center Remodel April23, 2019 Page 3 Following the approval of this agenda item theLake Elsinore Neighborhood Center Remodel work will begin. Staff has reviewed and verified the contractor has a valid license and has provided sufficient references. Fiscal Impact Lake Elsinore Neighborhood Center Remodel Projectis included in the Fiscal Year 18/19 – 22/23Capital Improvement Plan (CIP) budget. Exhibits A-Agreement 101 AgreementNo. AGREEMENTFORPUBLICWORKSCONSTRUCTION Corner Keystone Construction Corporation Forthe CIP PROJECTNO. Z20015 NEIGHBORHOODCENTERREMODELDOCUMENTS ThisAgreementforPublicWorksConstruction(“Agreement”)ismadeandenteredintoasof May 14,2019,byandbetweentheCityofLakeElsinore,amunicipalcorporation(‘‘City”)andCorner Keystone Construction Corporation (“Contractor”). TheCityandContractor,inconsiderationofthemutualpromisesandcovenantssetforth herein,agreeasfollows: 1.TheProjectandProjectDocuments.Contractoragreestoconstructthefollowingpublic improvements(“work”) identifiedas: CIP PROJECTNO.Z20015 The City-approved plans for the construction of the Project, which are incorporated herein by reference and prepared by STK Architecture andare identified as: NEIGHBORHOOD CENTER REMODEL TheProjectDocumentsincludethisAgreementandallofthefollowing:(1)theNoticeInviting Bids,InstructionstoBidders,BidDocumentsincludingBidder’sProposalassubmittedbytheContractor, ContractDocuments,GeneralSpecifications,SpecialProvisions,andallattachmentsandappendices;(2) everythingreferencedinsuchdocuments,suchasspecifications,details,standardplansordrawings andappendices,includingallapplicableStateandFederalrequirements;(3)allrequiredbonds, insurancecertificates,permits,notices,andaffidavits;and(4)anyandalladdendaorsupplemental agreementsclarifying,amendingorextendingtheworkcontemplatedasmayberequiredtoinsure completioninanacceptablemanner.Alloftheprovisionsoftheabove-listeddocumentsaremadea part of thisAgreementasthoughfullyset forthherein. 2.Compensation. a.Forandinconsiderationofthepaymentsandagreementstobemadeandperformed byCity,ContractoragreestoconstructtheProject,includingfurnishingallmaterialsandperformingall workrequiredforthe Project,andtofulfillallotherobligationsasset forthinthe Bidder’sProposal,such contractpricebeing Three Hundred Seventy Seven Thousand Ninety Five dollarsand six cents ($377,095.06). b.Cityherebypromisesandagreestoemploy,anddoesherebyemploy,Contractorto providethematerials,dothework,andfulfilltheobligationsaccordingtothetermsandconditions hereincontainedandreferredto,forthepricessetforth,andherebycontractstopaythesameatthe time, inthemanner,andupontheconditionsset forthintheProjectDocuments. c.ContractoragreestoreceiveandacceptthepricessetforthintheBidder’sProposalas fullcompensationforfurnishingallmaterials,performingallwork,andfulfillingallobligations 101 hereunder.Suchcompensationshallcoverallexpenses,losses,damages,andconsequencesarisingout ofthenatureofworkduringitsprogressorpriortoitsacceptanceincludingthoseforwellandfaithfully completingtheworkandthewholethereofinthemannerandtimespecifiedintheProjectDocuments; andalsoincludingthosearisingfromactionsoftheelements,unforeseendifficultiesorobstructions encounteredintheprosecutionofthework,suspensionordiscontinuanceofthework,andallother unknownsorrisksofanydescriptionconnectedwiththe work. 3.CompletionofWork. a.Contractorshallperformallworkwithin ThirtyFive(35)workingdaysfromthedateof commencementspecifiedintheNoticetoProceedandshallcompleteallworkwithin ThirtyFive(35) workingdays,andshallprovide,furnishandpayforallthelabor,materials,necessarytools, expendableequipment,andalltaxes,utilityandtransportationservicesrequiredforconstructionofthe Project. b.Allworkshallbeperformedandcompletedinagoodworkmanlikemannerinstrict accordancewiththedrawings,specificationsandallprovisionsofthisAgreementashereinabove definedandinaccordancewithapplicablelaws,codes,regulations,ordinancesandanyotherlegal requirementsgoverningtheProject. c.Contractorshallnotbeexcusedwithrespecttothefailuretosocomplybyanyactor omissionoftheCity,theDirectorofPublicWorks,theCityEngineer,aCityinspector,orarepresentative ofanyofthem,unlesssuchactoromissionactuallypreventstheContractorfromfullycomplyingwiththe requirementsoftheProjectDocuments,andunlesstheContractorprotestsatthetimeofsuchalleged preventionthattheactor omissionispreventingtheContractorfromfullycomplyingwiththeProject Documents.SuchprotestshallnotbeeffectiveunlessreducedtowritingandfiledwiththeCitywithin three(3)workingdaysofthedateofoccurrenceoftheactoromissionpreventingtheContractor from fullycomplyingwiththeProject Documents. d.CityandContractorrecognizethattimeisoftheessenceintheperformanceofthis AgreementandfurtheragreethatiftheworkcalledforundertheAgreementisnotcompletedwithinthe timehereinabovespecified,damageswillbesustainedbytheCityandthat,itisandwillbe impracticableorextremelydifficulttoascertainanddeterminetheactualamountofdamagestheCitywill sustainintheeventof,andbyreasonof,suchdelay.Itis,therefore,agreedthatsuchdamagesshallbe presumedtobeintheamountof FifteenHundredDollars($1,500)percalendarday,andthatthe Contractorwillpay totheCity,orCity may retainfrom amountsotherwisepayabletoContractor,such amountforeachcalendardaybywhichtheContractorfailstocompletethework,includingcorrective itemsofwork,underthisAgreementwithinthetimehereinabovespecifiedandasadjustedbyanychanges tothework. 4.ChangestoWork.CityandContractor agreethatthe Citymaymakechangestothe work,or suspendthework,andnomatterhowmanychanges,suchchangesorsuspensionsarewithinthe contemplationofthe ContractorandCityandwillnotbeabasisforacompensabledelayclaimagainstthe Citynor bethe basisfora liquidateddamagesclaimsagainstthe Contractor. Anychangetotheworkshallbebywayofawritteninstrument(“changeorder”)signedbytheCity andthe Contractor, statingtheir agreement tothefollowing: a.Thescopeofthechangeinthework; b.Theamountoftheadjustment tothecontractprice;and c.Theextentoftheadjustment totheScheduleofPerformance. TheDirectorofAdministrative Servicesisauthorizedtosignanychangeorderprovidedthat 101 sufficientcontingencyfundsareavailableintheCity’sapprovedbudgetfortheProject.Allchangeinthe workauthorizedbythechangeordershallbeperformedundertheapplicableconditionsoftheProject Documents.CityandContractorshallnegotiateingoodfaithandasexpeditiouslyaspossiblethe appropriateadjustmentsforsuchchanges. 5.SpecialFederalRequirements a.ContractorandOwnerdoherebyacknowledgethatthisprojectwillbepartiallyorfully fundedwithCommunityDevelopmentBlockGrant(CDBG)funds[24CFR570]andis thereforesubjecttoapplicableFederalprocurement,labor,environmental,equal opportunity,andother regulations. b.Contractorshallmaintainandkeepbooksandrecordsonacurrentbasis,recordingall transactionspertainingtothisagreementinaforminaccordancewithgenerally acceptableaccountingprinciples.Saidbooksandrecordsshallbemadeavailableto theCounty,theStateofCalifornia,theFederalgovernment,andtoanyauthorized representativethereofforthepurposesofauditatallreasonabletimesandplaces.All suchbooksandrecordsshallberetainedforsuchperiodsoftimeasrequiredbylaw, provided,however,notwithstandinganyshorterperiodsofretention,allbooks,records, andsupportingdetailshallberetainedforaperiodofatleastfour(4)yearsafterthe expirationofthetermofthisAgreement. c.Contractorshallcomplywiththe Davis-BaconFairLaborStandardsAct(40USCa-276, a-5)andtheimplementationregulationsthereof.ContractorshallcomplywiththeU.S. DepartmentofHousingandUrbanDevelopment’sFederalLaborStandardsProvisions (HUD4010). d.Contractoracknowledgesthatworkunderthiscontractissubjecttothepaymentof prevailingwagespursuanttoSection1770and1773etseq.oftheLaborCodeofthe State ofCalifornia,the Directorof IndustrialRelations(StatePrevailingWages),andthe U.S.DepartmentofHousingandUrbanDevelopment’sFederalLaborStandards Provisions(Davis-BaconActPrevailingWages). TheContractorto whomthe contractis awarded,andallsubcontractorsunderhim,shallpaythehigheroftheFederalorState prevailingwagerateforanygivenclassificationemployedintheperformanceofthis contract. e.Contractor acknowledgesthatthe applicableWageDeterminationforthisproject is: GeneralDecisionNumber:CA25 ModificationNumber:02 Date:02/15/2019 6.Section3Compliance:TheContractorherebyacknowledgesthatthisfederally-fundedprojectis subjecttoSection3ofthe HousingandUrbanDevelopmentActof1968 [12U.S.C.1701uand24 CFRPart 135] andagreestothefollowing: a.Theworkto beperformedunder thiscontract issubject totherequirementsof Section3 oftheHousingandUrbanDevelopmentActof1968,asamended,12U.S.C.1701u (Section3).ThepurposeofSection3 isto ensurethatemploymentandothereconomic opportunitiesgeneratedbyHUDassistanceorHUD-assistedprojectscoveredby Section3,shall,to thegreatestextentfeasible,bedirectedtolow-andverylow-income persons, particularlypersonswhoarerecipientsofHUDassistanceforhousing. 102 b.Thepartiesto thiscontractagreeto complywithHUD'sregulationsin24CFRPart135, whichimplementSection3.Asevidencedbytheirexecutionofthiscontract,theparties tothiscontractcertifythattheyareundernocontractualorotherimpedimentthatwould prevent them from complyingwiththePart135regulations. c.Thecontractoragreestosendtoeachlabororganizationorrepresentativeofworkers withwhichthe contractorhasa collectivebargainingagreementorotherunderstanding, ifany,anoticeadvisingthelabororganizationorworkers'representativeofthe contractor'scommitmentsunderthisSection3clause,andwillpostcopiesofthenotice inconspicuousplacesattheworksite wherebothemployeesandapplicantsfortraining andemploymentpositionscanseethenotice.ThenoticeshalldescribetheSection3 preference,shallsetforthminimumnumberandjobtitlessubjecttohire,availabilityof apprenticeshipandtrainingpositions,thequalificationsforeach;andthenameand locationoftheperson(s)takingapplicationsforeachofthepositions;andthe anticipateddatethe workshallbegin. d.ThecontractoragreestoincludethisSection3clauseineverysubcontractsubjectto compliancewithregulationsin24CFRPart135,andagreestotakeappropriateaction, asprovidedinanapplicableprovisionofthesubcontractorinthisSection3clause, uponafindingthatthesubcontractorisinviolationoftheregulationsin24CFRPart 135.Thecontractorwillnotsubcontractwithanysubcontractorwherethecontractor hasnoticeorknowledgethatthesubcontractorhasbeenfoundinviolationofthe regulationsin24CFRPart135. e.Thecontractorwillcertifythatanyvacantemploymentpositions,includingtraining positions,thatarefilled(1)afterthecontractorisselectedbutbeforethecontractis executed,and(2)withpersonsotherthanthosetowhomtheregulationsof24CFR Part135requireemploymentopportunitiestobedirected,werenotfilledtocircumvent the contractor'sobligationsunder 24CFRPart 135. f.NoncompliancewithHUD'sregulationsin24CFRPart135mayresultinsanctions, terminationofthiscontractfordefault,anddebarmentorsuspensionfromfutureHUD assistedcontracts. g.WithrespecttoworkperformedinconnectionwithSection3coveredIndianhousing assistance,Section7(b)oftheIndianSelf-DeterminationandEducationAssistanceAct (25U.S.C.450e)alsoappliestotheworktobeperformedunderthiscontract.Section 7(b)requiresthattothegreatestextentfeasible(i)preferenceandopportunitiesfor trainingandemploymentshallbegiventoIndians,and(ii)preferenceintheawardof contractsandsubcontractsshallbegiventoIndianorganizationsandIndian-owned EconomicEnterprises.Partiestothiscontractthataresubjecttotheprovisionsof Section3andSection7(b)agreetocomplywithSection3tothemaximumextent feasible,butnotinderogationof compliancewithSection7(b). 7.AdditionalFederalRequirements Whereas,theworkunderthisAgreementissubjecttoapplicableFederal,State,andlocallawsand regulations,includingbutnotlimitedtotheregulationspertainingtotheCommunityDevelopment BlockGrantprogram(24CFR Part570)and2CFRPart200.Contractor,sub-contractors, Consultants,andsub-consultantsagreetocomplywith,andaresubjectto,allapplicablerequirements asfollows: 103 a.EqualEmploymentOpportunity -CompliancewithExecutiveOrder 11246ofSeptember 24,1965,entitled"EqualEmploymentOpportunity",asamendedbyExecutiveOrder 11375ofOctober13,1967,andassupplementedinDepartmentofLaborregulations (41CFRchapter60).TheContractor/Consultantwillnotdiscriminateagainstany employeeorapplicantforemploymentbecauseofrace,color,religion,sex,ornational origin.Contractor/Consultantwillensurethatallqualifiedapplicantswillreceive considerationforemploymentwithoutregardtorace,color,religion,sexornational origin.TheContractor/Consultantwilltakeaffirmativeactiontoensurethatapplicants areemployedandtheemployeesaretreatedduringemployment,withoutregardto theirracecolor,religion,sex,ornationalorigin.Suchactionsshallinclude,butarenot limitedto,thefollowing:employment,up-grading,demotion,ortransfer;recruitmentor recruitmentadvertising;ratesofpayorotherformsofcompensation;andselectionfor training,includingapprenticeship.TheContractor/Consultantagreestopostina conspicuousplace,availabletoemployeesandapplicantsforemployment,noticesto beprovidedby the Countysettingforththeprovisionsof thisnon-discriminatingclause. b.Copeland“Anti-Kickback”Act(18U.S.C.874and40U.S.C.276c:Allcontractsand subgrantsinexcessof$2,000forconstructionorrepairawardedbyrecipientsand subrecipientsshallincludea provisionforcompliancewiththe Copeland“Anti-Kickback” Act(18U.S.C.874), assupplementedbyDepartment of Labor regulations(29CFRpart 3,“ContractorsandSubcontractorsonPublicBuildingorPublicWorkFinancedin WholeorinPartbyLoansorGrantsfromtheUnitedStates”).TheActprovidesthat eachcontractororsubrecipientshallbeprohibitedfrominducing,byanymeans,any personemployedintheconstruction,completion,orrepairofpublicwork,togiveup anypartofthe compensationtowhichheisotherwiseentitled.Therecipientshallreport allsuspectedorreportedviolationstoHUD. c.Davis-BaconAct,asamended(40U.S.C.276atoa-7:WhenrequiredbyFederal programlegislation,allconstructioncontractsawardedbytherecipientsand subrecipientsofmorethan$2000shallincludeaprovisionforcompliancewiththe Davis-BaconAct(40U.S.C.276atoa-7)andassupplementedbyDepartmentofLabor regulations(29CFRpart5,“LaborStandardsProvisionsApplicabletoContracts GoverningFederallyFinancedandAssistedConstruction”).UnderthisAct,contractors shallberequiredtopaywagestolaborersandmechanicsataratenotlessthanthe minimumwagesspecifiedinawagedeterminationmadebytheSecretaryofLabor.In addition,contractorsshallberequiredtopaywagesnotlessthanonceaweek.The recipientshallplaceacopyofthecurrentprevailingwagedeterminationissuedbythe DepartmentofLaborineachsolicitationandtheawardofacontractshallbe conditionedupontheacceptanceofthewagedetermination.Therecipientshallreport allsuspectedorreportedviolationstoHUD. d.ContractWorkHoursandSafetyStandardsAct(40U.S.C.327through333:Where applicable,allcontractsawardedbyrecipientsinexcessof$2000forconstruction contractsandinexcessof$2500forothercontractsthatinvolvetheemploymentof mechanicsorlaborersshallincludeaprovisionforcompliancewithSections102and 107oftheContractWorkHoursandSafetyStandardsAct(40U.S.C.327–333),as supplementedbyDepartmentofLaborregulations(29CFRpart5).UnderSection102 oftheAct,eachcontractorshallberequiredtocomputethewagesofeverymechanic andlaboreronthebasisofastandardworkweekof40hours.Workinexcessofthe standardworkweekispermissibleprovidedthattheworkeriscompensatedatarateof notlessthan1 1/2timesthe basicrateofpayfor allhoursworkedinexcessof 40hours intheworkweek.Section107oftheActisapplicabletoconstructionworkandprovides thatnolaborerormechanicshallberequiredtoworkinsurroundingsorunderworking conditionswhichareunsanitary,hazardousordangerous.Theserequirementsdonot 104 applytothepurchasesofsuppliesormaterialsorarticlesordinarilyavailableonthe openmarket,orcontractsfor transportationortransmissionofintelligence. e.RightstoInventionsMadeUnderaContractorAgreement—Contractsoragreements fortheperformanceofexperimental,developmental,orresearchworkshallprovidefor therightsoftheFederalGovernmentandtherecipientinanyresultinginventionin accordancewith37CFRpart401,“RightstoInventionsMadebyNonprofit OrganizationsandSmallBusinessFirmsUnderGovernmentGrants,Contractsand CooperativeAgreements,” andanyimplementingregulationsissuedbyHUD. f.RightstoDataandCopyrights–Contractorsandconsultantsagreetocomplywithall applicableprovisionspertainingtotheuseofdataandcopyrightspursuantto48CFR Part27.4,FederalAcquisitionRegulations(FAR). g.CleanAirAct(42U.S.C.7401etseq.)andtheFederalWaterPollutionControlAct(33 U.S.C.1251etseq.),asamended—Contractsandsubgrantsofamountsinexcessof $100,000shallcontainaprovisionthatrequirestherecipienttoagreetocomplywithall applicablestandards,ordersorregulationsissuedpursuanttotheCleanAirAct(42 U.S.C.7401etseq.)andtheFederalWaterPollutionControlActasamended(33 U.S.C.1251etseq.).ViolationsshallbereportedtoHUDandthe RegionalOfficeofthe EnvironmentalProtectionAgency(EPA). h.ByrdAnti-LobbyingAmendment(31U.S.C.1352)—Contractorswhoapplyorbidforan awardof$100,000ormoreshallfiletherequiredcertification.Eachtiercertifiestothe tierabovethatitwillnotandhasnotusedFederalappropriatedfundstopayany personororganizationforinfluencingorattemptingtoinfluenceanofficeroremployee ofanyagency,amemberofCongress,officeroremployeeofCongress,oran employeeofamemberofCongressinconnectionwithobtaininganyFederalcontract, grantoranyotherawardcoveredby31U.S.C.1352.Eachtiershallalsodiscloseany lobbyingwithnon-Federalfundsthattakesplaceinconnectionwithobtainingany Federalaward.Suchdisclosuresareforwardedfrom tier totier uptotherecipient. i.DebarmentandSuspension(E.O.s12549and12689)—Nocontractshallbemadeto partieslistedontheGeneralServicesAdministration'sListofPartiesExcludedfrom FederalProcurementorNonprocurementProgramsinaccordancewithE.O.s12549 and12689,“DebarmentandSuspension,”assetforthat24CFRpart24.Thislist containsthenamesofpartiesdebarred,suspended,orotherwiseexcludedby agencies,andcontractorsdeclaredineligibleunderstatutoryorregulatoryauthority otherthanE.O.12549.Contractorswithawardsthatexceedthesmallpurchase thresholdshallprovidetherequiredcertificationregardingitsexclusionstatusandthat ofitsprincipalemployees. j.Drug-FreeWorkplaceRequirements—TheDrug-FreeWorkplaceActof1988(42 U.S.C.701)requiresgrantees(includingindividuals)offederalagencies,asaprior conditionofbeingawardedagrant,tocertifythattheywillprovidedrug-free workplaces.Eachpotentialrecipientmustcertifythatitwillcomplywithdrug-free workplacerequirementsinaccordancewiththeActandwithHUD'srulesat24CFR part 24, subpartF. k.AccesstoRecordsandRecordsRetention:TheConsultantorContractor,andanysub- consultantsorsub-contractors,shallallowalldulyauthorizedFederal,State,and/or Countyofficialsorauthorizedrepresentativesaccesstotheworkarea,aswellasall books,documents,materials,papers,andrecordsoftheConsultantorContractor,and anysub-consultantsorsub-contractors,thataredirectlypertinenttoaspecificprogram for the purposeofmakingaudits,examinations,excerpts,andtranscriptions.The ConsultantorContractor,andanysub-consultantsorsub-contractors,furtheragreeto maintainandkeepsuchbooks,documents,materials,papers,andrecords,on a currentbasis,recordingalltransactionspertainingtothisagreementinaformin accordancewithgenerallyacceptableaccountingprinciples.Allsuchbooks and recordsshallberetainedforsuchperiodsoftimeasrequiredbylaw,provided, however,notwithstandinganyshorterperiodsofretention,allbooks,records,and supportingdetailshallberetainedforaperiodofatleastfour(4)yearsafterthe expirationofthetermofthisAgreement. l.FederalEmployeeBenefitClause:Nomemberofordelegatetothecongressofthe UnitedStates,andnoResidentCommissionershallbeadmittedtoanyshareorpartof thisagreementorto anybenefit to arisefrom thesame. m.EnergyEfficiency:Mandatorystandardsandpoliciesrelatingtoenergyefficiencywhich arecontainedintheStateenergyconservationplanissuedincompliancewiththe EnergyPolicyandConservationAct(Pub. L. 94A163, 89Stat.871). n.ProcurementofRecoveredMaterials(2CFR200.322.)Anon-Federalentitythatisa stateagencyoragencyofapoliticalsubdivisionofastateanditscontractorsmust complywithsection6002oftheSolidWasteDisposalAct,asamendedbythe ResourceConservationandRecoveryAct.TherequirementsofSection6002include procuringonlyitemsdesignatedinguidelinesoftheEnvironmentalProtectionAgency (EPA)at40CFRpart247thatcontainthehighestpercentageofrecoveredmaterials practicable,consistentwithmaintainingasatisfactorylevelofcompetition,wherethe purchasepriceoftheitemexceeds$10,000orthevalueofthequantityacquiredbythe precedingfiscalyearexceeded$10,000;procuringsolidwastemanagementservicesin a manner that maximizesenergyandresourcerecovery;andestablishinganaffirmative procurementprogramforprocurementofrecoveredmaterialsidentifiedintheEPA guidelines. 8.Bonds.Contractorshallprovide,beforecommencingwork,aFaithfulPerformanceBond andaLaborandMaterialBond,eachforone-hundredpercent(100%)ofthecontractpriceintheform that complieswiththeProject Documentsandissatisfactorytothe CityAttorney. 9.Non-Assignability.NeitherthisAgreementnoranyrights,title,interest,dutiesorobligations underthisAgreementmaybeassigned,transferred,conveyedorotherwisedisposedofbyContractor without the priorwrittenconsentofCity. 10.Licenses.ContractorrepresentsandwarrantstoCitythatitholdsthecontractor’slicense orlicensessetforthintheProjectDocuments,isregisteredwiththeDepartmentofIndustrialRelations pursuanttoLaborCodeSection1725.5asofMarch1,2015,andholdssuchotherlicenses,permits, qualifications,insuranceandapprovalsofwhatsoevernaturewhicharelegallyrequiredofContractor. ContractorrepresentsandwarrantstoCitythatContractorshall,atitssolecostandexpense,keepin effectorobtainatalltimesduringthetermofthisAgreement,anylicenses,permits,insuranceand approvalswhicharelegallyrequiredofContractortopracticeitsprofession.Contractorshallmaintain a CityofLakeElsinorebusinesslicense. 11.Indemnity.Contractorshallindemnify,defend,andholdharmlesstheCityandRiverside Countyanditsofficials,officers,employees,agents,andvolunteersfromandagainstanyandall losses,liability,claims,suits,actions,damages,andcausesofactionarisingoutofanypersonal injury,bodilyinjury,lossoflife,ordamagetoproperty,oranyviolationofanyfederal,state,or municipallaworordinance,totheextentcaused,inwholeorinpart,bythewillfulmisconductor negligentactsoromissionsofContractororitsemployees,subcontractors,oragents,byactsfor whichtheycouldbeheldstrictlyliable,orbythequalityorcharacteroftheirwork.Theforegoing obligationofContractorshallnotapplywhen(1)theinjury,lossoflife,damagetoproperty,orviolation 105 106 oflawarisesfromthesolenegligenceorwillfulmisconductoftheCityoritsofficers,employees, agents,orvolunteersand(2)the actionsofContractororitsemployees,subcontractor,oragentshave contributedinnoparttotheinjury,lossoflife,damagetoproperty,orviolationoflaw.Itisunderstood thatthedutyofContractortoindemnifyandholdharmlessincludesthedutytodefendassetforthin Section2778oftheCaliforniaCivilCode.AcceptancebyCityofinsurancecertificatesand endorsementsrequiredunderthisAgreementdoesnotrelieveContractorfromliabilityunderthis indemnificationandholdharmlessclause.Thisindemnificationandholdharmlessclauseshallapply toanydamagesorclaimsfordamageswhetherornotsuchinsurancepoliciesshallhavebeen determinedtoapply.ByexecutionofthisAgreement,Contractoracknowledgesandagreestothe provisionsof thisSectionandthat itisamaterialelementofconsideration. 12.InsuranceRequirements. a.Insurance.Contractor,atContractor’sowncostandexpense,shallprocureand maintain,forthedurationoftheAgreement,unlessmodifiedbytheCity’sRiskManager,thefollowing insurancepolicies. i.Workers’CompensationCoverage.ContractorshallmaintainWorkers’ CompensationInsuranceandEmployer’sLiabilityInsuranceforhis/heremployeesin accordancewiththelawsoftheStateofCalifornia.Inaddition,Contractorshallrequireeach subcontractortosimilarlymaintainWorkers’CompensationInsuranceandEmployer’sLiability InsuranceinaccordancewiththelawsoftheStateofCaliforniaforallofthesubcontractor’s employees.Anynoticeofcancellationornon-renewalofallWorkers’Compensationpolicies mustbereceivedbytheCityatleastthirty(30)dayspriortosuchchange.Theinsurershall agreetowaiveallrights ofsubrogationagainstCity,itsofficers,agents,employeesand volunteersforlossesarisingfromworkperformedbyContractorforCity.Intheeventthat ContractorisexemptfromWorker’sCompensationInsuranceandEmployer’sLiability Insuranceforhis/heremployeesinaccordancewiththelawsoftheStateofCalifornia, ContractorshallsubmittotheCityaCertificateofExemptionfromWorkersCompensation Insuranceinaform approvedbytheCityAttorney. ii.GeneralLiabilityCoverage.Contractorshallmaintaincommercialgeneral liabilityinsuranceinanamountnotlessthanonemilliondollars($1,000,000)peroccurrence forbodilyinjury,personalinjuryandpropertydamage.Ifacommercialgeneralliability insuranceformorotherformwithageneralaggregatelimitisused,eitherthegeneral aggregatelimitshallapplyseparatelytotheworktobeperformedunderthisAgreementorthe generalaggregatelimitshallbeatleasttwicetherequiredoccurrencelimit.Required commercialgeneralliabilitycoverageshallbeatleastasbroadasInsuranceServicesOffice CommercialGeneralLiabilityoccurrenceformCG0001(ed.11/88)orInsuranceServices OfficeformnumberGL0002(ed.1/73)coveringcomprehensiveGeneralLiabilityand InsuranceServicesOfficeformnumberGL0404coveringBroadFormComprehensive GeneralLiability.Noendorsement maybeattachedlimitingthecoverage. iii.AutomobileLiabilityCoverage.Contractorshallmaintainautomobileliability insurancecoveringbodilyinjuryandpropertydamageforallactivitiesoftheContractorarising outoforinconnectionwiththe worktobeperformedunder thisAgreement,includingcoverage forowned,hiredandnon-ownedvehicles,inanamountofnotlessthanonemilliondollars ($1,000,000)combinedsinglelimitforeachoccurrence.Automobileliabilitycoveragemustbe atleastasbroadasInsuranceServicesOfficeAutomobileLiabilityformCA0001(ed.12/90) Code1 (“anyauto”).Noendorsement maybeattachedlimitingthe coverage. iv.ProfessionalLiabilityCoverage[ifapplicable].Contractorshallmaintain professionalerrorsandomissionsliabilityinsuranceappropriateforContractor’sprofessionfor protectionagainstclaimsallegingnegligentacts,errorsoromissionswhichmayarisefrom Contractor’sservicesunderthisAgreement,whethersuchservicesareprovidedbythe 107 Contractororbyits employees,subcontractors,or subconsultants.Theamountofthis insuranceshallnotbelessthanonemilliondollars($1,000,000)onaclaims-madeannual aggregatebasis, or a combinedsinglelimitperoccurrencebasis. b.Endorsements.Eachgeneralliabilityandautomobileliabilityinsurancepolicyshall bewithinsurerspossessingaBest’sratingofnolessthanA:VIIandshallbeendorsedwiththe followingspecificlanguage: i.TheCityandRiversideCounty,itselectedorappointedofficers,officials, employees,agentsandvolunteersaretobecoveredasadditionalinsuredwithrespectto liabilityarisingoutofworkperformedbyoronbehalfoftheContractor,includingmaterials, partsor equipment furnishedinconnectionwithsuchworkor operations. ii.ThispolicyshallbeconsideredprimaryinsuranceasrespectstheCity,its electedorappointedofficers,officials,employees,agentsandvolunteers.Anyinsurance maintainedbytheCity,includinganyself-insuredretentiontheCitymayhave,shallbe consideredexcessinsuranceonlyandshallnot contributewithit. iii.Thisinsuranceshallactforeachinsuredandadditionalinsuredasthougha separatepolicyhadbeenwrittenforeach,exceptwithrespecttothelimitsofliabilityofthe insuringcompany. iv.TheinsurerwaivesallrightsofsubrogationagainsttheCity,itselectedor appointedofficers,officials,employeesoragents. v.Anyfailuretocomplywithreportingprovisionsofthepoliciesshallnotaffect coverageprovidedtotheCity,itselectedorappointedofficers,officials,employees,agentsor volunteers. vi.TheinsuranceprovidedbythisPolicyshallnotbesuspended,voided, canceled,orreducedincoverageorinlimitsexceptafterthirty(30)dayswrittennoticehas beenreceivedbythe City. c.DeductiblesandSelf-InsuredRetentions.Anydeductiblesorself-insuredretentions mustbedeclaredtoandapprovedbytheCity.AttheCity’soption,Contractorshalldemonstrate financialcapabilityforpayment of suchdeductiblesor self-insuredretentions. d.CertificatesofInsurance.Contractorshallprovidecertificatesofinsurancewith originalendorsementstoCityasevidenceoftheinsurancecoveragerequiredherein.Certificatesof suchinsuranceshallbefiledwiththeCityonor beforecommencementofperformanceofthis Agreement.CurrentcertificationofinsuranceshallbekeptonfilewiththeCityatalltimesduringthe termofthisAgreement. 13.Notices.AnynoticerequiredtobegivenunderthisAgreementshallbeinwritingand eitherservedpersonallyorsentprepaid,firstclassmail.Anysuchnoticeshallbeaddressedtothe otherpartyattheaddresssetforthbelow.Noticeshallbedeemedcommunicatedwithin48hours from thetimeof mailingif mailedasprovidedinthissection. 14.IftoCity: Cityof LakeElsinore Withacopyto:CityofLakeElsinore Attn:City Manager Attn:City Clerk 130 South Main Street 130 South Main Street Lake Elsinore, CA 92530 Lake Elsinore,CA 92530 108 To Contractor: Corner Keystone Construction Corporation Attn: Man Dy 340 S Lemon Ave , STE 5210 Walnut, CA 91789 15.EntireAgreement.ThisAgreementconstitutesthecompleteandexclusivestatementof agreementbetweentheCityandContractor.Allpriorwrittenandoralcommunications,including correspondence, drafts, memoranda, andrepresentations, aresupersededintotalbythisAgreement. 16.Amendments.ThisAgreementmaybemodifiedoramendedonlybyawrittendocument executedbybothContractor andCityandapprovedastoform bythe CityAttorney. 17.AssignmentandSubcontracting.ContractorshallbefullyresponsibletoCityforallacts oromissionsofanysubcontractors.Assignmentsofanyorallrights,dutiesorobligationsofthe ContractorunderthisAgreementwillbepermittedonlywiththeexpressconsentoftheCity.Nothing inthisAgreementshallcreateanycontractualrelationshipbetweenCityandanysubcontractornor shallitcreateanyobligationonthepartoftheCitytopayortoseetothepaymentofanymoniesdue to anysuchsubcontractorother thanasotherwiseisrequiredbylaw. 18.Waiver.Waiverofabreachor defaultunderthis Agreementshallnotconstitutea continuingwaiverofasubsequentbreachof thesameoranyother provisionunder thisAgreement. 19.Severability.IfanytermorportionofthisAgreementisheldtobeinvalid,illegal,or otherwiseunenforceablebyacourtofcompetentjurisdiction,theremainingprovisionsofthis Agreementshallcontinueinfullforceandeffect. 20.ControllingLawVenue.ThisAgreementandallmattersrelatingto itshallbegovernedby thelawsoftheStateofCaliforniaandanyactionbroughtrelatingtothisAgreementshallbeheld exclusivelyina statecourt intheCountyof Riverside. 21.LitigationExpensesandAttorneys’Fees.IfeitherpartytothisAgreementcommences anylegalactionagainsttheotherpartyarisingoutofthisAgreement,theprevailingpartyshallbe entitledtorecoverits reasonablelitigationexpenses,includingcourtcosts,expertwitnessfees, discoveryexpenses, andattorneys’fees. 22.Mediation.Thepartiesagreeto makeagoodfaithattemptto resolveanydisputesarising outofthisAgreementthroughmediationpriortocommencinglitigation.Thepartiesshallmutually agreeuponthemediatorandsharethecostsofmediationequally.Ifthepartiesareunabletoagree uponamediator,thedisputeshallbesubmittedtoJAMSoritssuccessorininterest.JAMSshall providethepartieswiththenamesoffivequalifiedmediators.Eachpartyshallhavetheoptionto striketwoofthefive mediatorsselectedbyJAMSandthereafterthe mediatorremainingshallhearthe dispute.Ifthedisputeremainsunresolvedafter mediation, either partymaycommencelitigation. 23.AuthoritytoEnterAgreementandAdministration.Contractorhasallrequisitepowerand authoritytoconductitsbusinessandtoexecute,deliver,andperformtheAgreement.Eachparty warrantsthattheindividualswhohavesignedthisAgreementhavethelegalpower,right,and authoritytomakethisAgreementandtobindeachrespectiveparty.TheCityManagerisauthorized toenterintoanamendmentorotherwisetakeactiononbehalfoftheCitytomakethefollowing modificationstotheAgreement:(a)anamechange;(b)grantextensionsoftime;(c)non-monetary changesinthescopeofservices;and/or(d)suspendorterminatetheAgreement.TheDirectorof PublicWorksshallact astheProject administrator onbehalf of theCity. 109 24.ProhibitedInterests.Contractormaintainsandwarrantsthatithasnotemployednor retainedanycompanyorperson,otherthanabonafideemployeeworkingsolelyforContractor,to solicitorsecurethisAgreement.Further,Contractorwarrantsthatithasnotpaidnorhasitagreedto payanycompanyorperson,otherthanabonafideemployeeworkingsolelyforContractor,anyfee, commission,percentage,brokeragefee,giftorotherconsiderationcontingentuponorresultingfrom theawardormakingofthisAgreement.Forbreachorviolationofthiswarranty,Cityshallhavethe righttorescindthisAgreementwithoutliability.ForthetermofthisAgreement,nomember,officeror employeeofCity,duringthetermofhisorherservicewithCity,shallhaveanydirectinterestinthis Agreement, or obtainanypresentoranticipatedmaterialbenefit arisingtherefrom. 25.EqualOpportunityEmployment.Contractorrepresentsthatitisanequalopportunity employeranditshallnotdiscriminateagainstanysubcontractor,employeeorapplicantfor employmentbecauseofrace,religion,color,nationalorigin,handicap,ancestry,sexorage.Such non-discriminationshallinclude,butnotbelimitedto,allactivitiesrelatedtoinitialemployment, upgrading,demotion, transfer, recruitmentorrecruitment advertising, layoffortermination. 26.PrevailingWages. a.Contractorandallsubcontractorsshalladheretothegeneralprevailingrateofper diemwagesasdeterminedandaspublishedbytheStateDirectoroftheDepartmentofIndustrial RelationspursuanttoLaborCodeSections1770,1773,and1773.2.Copiesoftheseratesandthe latestrevisionstheretoareonfileintheofficeoftheCityClerkoftheCityofLakeElsinoreandare availableforreviewuponrequest. b.Contractor’sattentionisdirectedtotheprovisionsofLaborCodeSections1774, 1775,1776,1777.5and1777.6.ContractorshallcomplywiththeprovisionsoftheseSections.The statutoryprovisionsforpenaltiesforfailuretocomplywiththeState’swageandthehourslawswillbe enforced. c.LaborCodeSections1774and1775requirethe Contractorandallsubcontractorsto paynotlessthantheprevailingwageratestoallworkmenemployedintheexecutionofthecontract andspecifyforfeituresandpenaltiesforfailuretodoso.Theminimumwagestobepaidarethose determinedbytheStateDirectoroftheDepartmentofIndustrialRelations.LaborCodeSection1776 requirestheContractorandallsubcontractorstokeepaccuratepayrollrecords,specifiesthecontents thereof,theirinspectionandduplicationproceduresandcertainnoticesrequiredoftheContractor pertainingtotheirlocation.Thestatutorypenaltiesforfailuretopayprevailingwageswillbeenforced. IftheProjecthasbeenawardedtoContractoronorafterApril1,2015,Contractorandits subcontractorsmustfurnishelectroniccertifiedpayrollrecordstotheLaborCommissioner.Beginning January1,2016,Contractoranditssubcontractorsmustfurnishelectroniccertifiedpayrollrecordsto the LaborCommissioner without regardto when theProject wasawarded to Contractor. d.LaborCodeSection1777.5requiresContractororsubcontractoremploying tradesmeninanyapprenticeableoccupationtoapplytotheJointApprenticeshipCommitteenearest thesiteofthepublicworksproject,whichadministerstheapprenticeshipprograminthattradefora certificateofapproval.Thecertificatewillalsofixtheratioofapprenticestojourneymentobeusedin theperformanceoftheAgreement.TheContractorisrequiredtomakecontributionstofunds establishedfortheadministrationofapprenticeshipprogramsiftheContractoremploysregistered apprenticesorjourneymeninanyapprenticeabletradeandifother contractorsonthepublicworkssite aremakingsuchcontributions.Informationrelativetoapprenticeshipstandards,contributions,wage schedulesandotherrequirementsmaybeobtainedfromtheStateDirectorofIndustrialRelationsor fromtheDivisionofApprenticeshipStandards.LaborCodeSection1777.6providesthatitshallbe unlawfultorefusetoacceptotherwisequalifiedemployeesasregisteredapprenticessolelyonthe groundsofrace, religiouscreed, color, nationalorigin,ancestry, sex, or age. 110 1810. e.Eighthourslaborconstitutesalegalday’swork,assetforthinLaborCodeSection 27.Execution.ThisAgreementmaybeexecutedinseveralcounterparts,eachofwhichshall constituteoneandthesameinstrumentandshallbecomebindinguponthepartieswhen atleastonecopyhereofshallhavebeensignedbybothpartieshereto.Inapproving thisAgreement,itshallnotbenecessaryto produceor accountformorethanonesuch counterpart. [Signatureson nextpage] 111 INWITNESSWHEREOF,thepartieshavecausedthisAgreementtobeexecutedonthedate firstwrittenabove. “CITY” CITYOFLAKEELSINORE,amunicipal corporation “CONTRACTOR” CornerKeystone Construction Corporation GrantYates, CityManager ATTEST: ManDybongco, President By: Its: Deputy CityClerk APPROVEDASTO FORM: By: Its: CityAttorney